* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download INKAcase Marketing Plan - The Andean Alliance for Sustainable
Marketplace Fairness Act wikipedia , lookup
First-mover advantage wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Service parts pricing wikipedia , lookup
Consumer behaviour wikipedia , lookup
Online shopping wikipedia , lookup
Marketing research wikipedia , lookup
Social media marketing wikipedia , lookup
Perfect competition wikipedia , lookup
Food marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Music industry wikipedia , lookup
Digital marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Supermarket wikipedia , lookup
Pricing strategies wikipedia , lookup
Neuromarketing wikipedia , lookup
Viral marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Market penetration wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Target audience wikipedia , lookup
Street marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Target market wikipedia , lookup
Green marketing wikipedia , lookup
Sales process engineering wikipedia , lookup
Product planning wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing channel wikipedia , lookup
Sensory branding wikipedia , lookup
INKAcase Marketing Plan FY 2012-2013 Hyo Jung Nam, Jeanne Amrein, Li Li, Liu Chang IMGT8570 Marketing Management December 6, 2011 Executive Summary Laptops are more affordable and accessible than ever before and the need to protect this product that we have become universally dependent upon for everything in our lives is even more important. INKAcase offers a socially and environmentally responsible laptop case with a trendy and unique design. The Andean Alliance for Sustainable Development has worked closely with several Indigenous communities in the Sacred Valley of Peru to create a quality product of which the sales will go directly to the women and communities making this product by hand and local materials. The partnership with the local communities and the Monterey Institute of International Studies allows for a unique marketing model. Many graduate students will have the opportunity to work with the weavers directly or remotely to help maintain the viability of the product sales. Buy-in from local communities in Peru and graduate students in the U.S. fosters the sense of ownership from both stakeholders. The objective of the project is to improve the quality of life for indigenous communities in Peru while giving graduate students the opportunity to use their skills and knowledge in an international professional setting. The purpose of this marketing plan is to ensure a viable launch of INKAcase on the Monterey Institute of International Studies and Middlebury College campuses which can be then replicated with little adjustments to the wider public. This marketing plan outlines the diverse marketing mix, relying heavily on social networking and the socially conscience consumer adding a fifth ‘P’ to the four “P’s” of marketing. Using secondary sources with a plan for more market research using primary sources through surveys, the Andean Alliance and its subsidiary college student clubs will be the primary actors capitalizing on this specific and ripe market of consumers. Based on the sales forecast of the Monterey Institute and Middlebury campus we have scaled our sales goals accordingly but also acknowledge the vast market of the central California coasts’ strong dedication to environmental and socially awareness and expect the local coordinators to push the product to the community around the Monterey Institute’s campus. 2 Table of Contents Introduction…………………………….…………………………..………………… 4 Situational Analysis …………………….……………………………………………5 Marketing Planning …………..………..….…..….………………………………..6 Implementation/Control…….…………………….………………………….…12 Budget……………………………………………………………………………………13 Summary ……………………………..……………………………………………….14 Appendices …………………….………………………………….………………….15 3 Introduction The marketing plan for the latest addition to the emerging field of Social Enterprise is the INKAcase. A laptop case that is hand-woven by Indigenous women from remote villages in the Sacred Valley of Peru. This marketing plan is designed for the initial product launch which will begin on the campuses of the Monterey Institute of International Studies (MIIS) and Middlebury College. The NGO behind this social enterprise is the Andean Alliance for Sustainable Development (AASD). INKAcases are designed for socially and environmentally concerned consumers, with the desire to purchase products where their money is used to positively impact the lives of those less fortunate. The purpose of this marketing plan is to provide a roadmap for AASD to begin marketing their socially and economically sustainable product to university and college campuses within the United States and ultimately become a profitable business. Using AASD’s connection with MIIS and Middlebury, the success in the initial target market will demonstrate the viability of the product and the marketing plan before expanding to more campuses throughout the United States within the next 2 years. The quality of the product and the social mission, or the incorporation of the fifth ‘P’ into the marketing mix (Purpose), will prove to be the competitive advantage and a leading factor of its success. Outlined in the marketing plan is: An analysis of the existing market for socially responsible consumer goods including existing and potential competition; An explanation of marketing objectives; Justification of the target markets; A detailed marketing mix of: product, promotion, placement, price and purpose; and The implementation and evaluation methods including evidence placed in the appendices. 4 Situational Analysis “64% (of global consumers) believe it is no longer enough for corporations to give money; they must integrate good causes into their everyday business.”1 Fair trade products have been around and marketed as such for about 60 years 2 and the field has recently boomed with the success of products such as Tom’s Shoes. Studies show that this trend is not dying anytime soon and is likely in fact to become the norm, replacing corporate social responsible giving. The 2010 Edelman goodpurpose® global study, found that 86 percent of global consumers expected businesses to consider societal interests at least as much as their own interests. AASD collaborates with indigenous communities and socially responsible entities to create a positive lasting environment which supports human development and a healthy future. The profits from INKAcase sales will directly benefit the poverty alleviation programs of the AASD.3 Almost half of Peruvians live below the national poverty line and the purpose of improving economic opportunities, especially for women and their children represents the type of mission consumers will support. In addition to the purpose, there is a demonstrated need and want for laptop cases within the United States as the sale of laptops, is expected to be “61.1 million in 2012.”4 Targeting the small campuses as the first locations for the product launch will demonstrate the success of the product and the viability of scaling-up to campuses across the country. Our competitors create awareness and are in fact are assisting in the expansion of this market of socially responsible consumer goods. One local competitor is Rising International out of Santa Cruz, California. This organization focuses on its mission of offering a platform for women in high-risk environments to sell their handicraft items but not exclusively laptop cases. The other direct competitor does not focus any aspect of their company on corporate social responsibility and has not included socially responsible products in their product line, incase©. The phasing out of corporate social responsibility currently considered as “buying-off” communities, where companies pollute and take advantage of is not good enough for the American or global consumer. Consumers are expecting more companies to not only give back but to create an overall environment and product of sustainability. Based on our market segment, competitors in the socially and environmentally responsible category will be considered “co-opetition” rather than direct competitors while the non-socially and environmentally unaware companies selling laptop cases are at a disadvantage and stand to lose part of their market segment to our product. 1 Fourth Annual Global Consumer Survey. Citenzens Engage! Survey, Edleman goodpurpose Study 2010, 2010. Kocken, Marlike. Sixty Years of Fair Trade: A Brief History of the Fair Trade Movement. International Fair Trade Association , 2006. 3 http://www.wix.com/indigocraftwork/indigo#!partners 4 (http://eeepc.itrunsonlinux.com/the-news/1-latest-news/155-idc-report-shows-netbooks-are-boosting-laptopsales). 2 5 Marketing Planning OBJECTIVES 1. Increase overall sales by 330% for Fiscal Year 2012 beginning August 1. The current sales (15 cases a month) will be increased to an average 50 cases a month. 2. Raise brand awareness by blogging once a week on MIIS and Middlebury students’ blogs and participating in campus activities. TARGET MARKETS The target customers are socially and environmentally conscious laptop owners who are willing to spend a little extra money because of the added values that are beneficial to the global community and the environment. Their age ranges from 19 to 39 and average income is from $10,000 to $60,000. They are both technologically and media savvy, also they spend about half an hour daily on Facebook, Twitter or any other social media sites. They are keen on trends and social events which they consider being socially and environmentally responsible as such. Trend setters or trend followers who are interested in different and/or innovative designs are often found on college campuses. The option to purchase socially responsible goods in person or online will be an additional channel to reach the trendy and trend followers, expands the reach to the target customers. The FY 2012 students at the Monterey Institute of International Studies in California and Middlebury College in Vermont will be the primary market. Table 1 shows the potential size of the target market. Table 1 (a) 800 MIIS students, 150 faculty and adjunct faculty at MIIS, 715 Middlebury Faculty, 9,750 Middlebury students (b) Annual number of purchases per person: .25 (every 4 years) (c) Total potential market: a*b=c 11,415*.25= 2,854 (c) Total potential market: 2,854 (d) Percent of total market coverage: .75 estimate based on percent of students/faculty with laptops and including those without or new cases already (e) Total available market: c*d=e 2,854*.75= 2,141 (e) Total available market: 2,141 (f) Expected market share: between .5 and .3 (30-50%) (g) Sales forecast (in units): at 50%= 1,071 at 30%= 642 e*f=g 2,141*.5= 1,071 or 2,141*.3= 642 (g) Sale forecast (in units): 1,070 (642) (h) Price: 50 6 (i) Sales forecast (in dollars): 1,070 *50= $53,550 (642*30= $32,100) *Does not include online sales, outside MIIS and Middlebury communities (targeted at farmers markets), nor account for gifts The target market was decided based on the analysis of previous customers. Despite no marketing or advertising, there was a steady small amount of sales, mostly through word of mouth. It turned out that 10 cases (2010) and 15 cases (2011) were sold on average per month and majority of customers were female. The average income level was $30,000 (2010) and $25,000 (2011). The most outstanding finding is that 80% (2010) and 90% (2011) of customers were students and 80% (2010) and 90% (2011) of customers were based in California. According to these numbers, we conclude that it is safe to start with the current customer base which are university students and faculty. 2010 (Jan-Dec) Average number of cases 2011 (Jan-June) 10 cases per month 15 cases per month Gender ratio 8: 2 (female: male) 7: 3 (female: male) Age range 19 -29 20 -27 Average Income $30,000 $25,000 Profession Student (80%), professional Student (90%), professional (20%) (10%) California (80%), other U.S. California (90%), other U.S. cities (20%) cities (10%) sold Region Based on findings from a focus group of 10 participants aged 21 to 29 years old in Monterey, the response was that they were interested in social and environmental issues and $50 for a laptop case is a bit pricy, but given the good cause of this product, they showed interest and willingness to purchase. They were all students who own a laptop. Some even commented it would be a good present candidate for the holiday seasons such as Christmas. In regards to questions about the design, most participants found it unique and/or innovative. Some asked about availability of different sizes. Profiles of several participants are shown in Appendix A. MARKETING MIX Product Currently there is only one size laptop case fitted for a 13 inch laptop. But in order to make a more diversified product mix, making a richer product line, we will add two more sizes for laptop cases: 11inches and 15 inches. 7 The product is made with sheep’s wool combined with 10 percent alpaca wool. This combination creates a water resistant material. The padding protects the computer from outside damage. The distinct indigenous patterns are one of a kind and fashionable distinguishing from other non-handmade fair-trade similar products. The production rate: Each of the 15 women make 3 cases a month to equal 50 cases or the alternative is that 3 groups of 15 women produce 1 case a month to equal 50 cases before the start of the first sales period August 1, 2012. During and before the second sales period beginning February 1, 2013, there will be either an increase in productivity and skill or the addition of another women’s weaving group added to scale up to 70 cases a month. Price “When choosing between two brands of equal quality and price… Social purpose continues to rank as the number one deciding factor for global consumers above design, innovation and brand loyalty.”5 Based on research represented in the above quote, it is believed that the price point of $50 for a hand-made, environmentally and socially sustainable product fitted for a 13 inch laptop will sell. The company selling laptop cases of a solid color and no social or environmental responsibility are selling at $40 a case for the same size. They offer cases with designs for $50$60 and with no alternative purpose for society or the environment; it is believed that the INKAcase will have a solid sales in this market, “I would switch brands if a different brand of similar quality supported a good cause.”6 When a laptop case is sold, the cost is broken down as shown in the Table 3. For the first year, this cost structure will be maintained. From the second year, various pricing strategies will be considered if both sales and production rates grow. For example, the unit price per case may be lowered down to $40 or $45 (a more simple or plain design will be priced lower), this however lowers the funds which go to AASD. This strategy could potentially make the product more competitive and eventually increase sales. The disadvantage is that AASD will receive lower funds, but it will be a temporary situation as raised sales means more funds in the long run. In the similar sense, a pricing discount will be also considered from the second year especially when the target markets are extended to the corporate consumer. Businesses are often open to long term contracts with more volumes. If the management team determines that production rate is stable enough to deal with larger volumes, a pricing discount can be considered as an option to boost sales. The projected revenue for the first year is shown in Table 4 (located in Appendix B. 5 6 (Fourth Annual Global Consumer Survey 2010) (Fourth Annual Global Consumer Survey 2010) 8 Table 3 Cost breakdown Cost $50 $24 $20 $5 $1 Breakdown Purchase Fair trade manufacturing AASD (Andean Alliance for Sustainable Development) Management fee Overhead cost Promotion “I would help a brand to promote their products or services if there is a good cause behind them.”7 The INKAcase will be highly promoted in the following sites: Campus events such as: new student orientation, club fairs, book sales, special events focused on Latin America and other socially or environmentally themes; On-campus and online bookstores; On-campus club sponsorship and promotion; Farmers Markets; and eBay, etsy.com, and other online sales platforms. Sales and Marketing dimensions: For student councils and clubs with missions geared towards concerns of humanity and sustainable development, an incentive plan will be rolled out to boost the sales and promotion on campus. For example, there will be one designated group of students or a club responsible for promoting this project per campus. The incentive system is carried out to encourage better service and sales performance. Students in the selling process with outstanding performance will be rewarded “Best Service of the Month” and “Best Sales of the Month” in the club as well as on the INKAcase webpage. As an incentive, the club will receive a portion of the sales if the actual sales volume exceeds the monthly target: 7 1%-5% extra: 5 dollars bonus 6%-10% extra: 10 dollars bonus 11%-20%: 17 dollars 21%-35%: 28 36%-50%: 40 51%-70%: 55 (Fourth Annual Global Consumer Survey 2010) 9 71%-90%: 75 90%-100%: 100 With a target of college students and faculty, the timing to launch the promotion activities is very important. During the orientation week in August and other special events throughout the semester there will be specific booths set up for promotion and sales. Brochures can be obtained from the library, alumni office, student center, and local recreational sites. A competition will be organized such as a weaving competition during an art or international festival on campus or as a special event to create a buzz and reach more people about INKAcases and the unique meaning of handmade products by the women in Peru. Distribution (Placement) Placement of the INKAcases will be in school souvenir shops, alumni offices, and during farmers and local handicraft events. The samples of the four cases will be shown and will serve as a media strategy as a way to use a pulling strategy. When people get the case information from the handouts or brochures, they know they can go to see the real case in the alumni's office. All the promotional activities and brochures and handouts serve as effective tools as a pushing strategy in distribution, “I am more likely to recommend a brand that supports a good cause than one that doesn’t.”8 In addition to the official website, which needs to be refurbished, an eBay account should also set up so as to get orders online, boosting the sales of INKAcase through increased accessibility. 8 (Fourth Annual Global Consumer Survey 2010) 10 Implementation and Control Implementation INKAcase will conduct both online shopping and on-site shopping services. The personnel structure of the marketing is shown as Appendix C. The whole INKAcase project is overseen by Tina Novero, who will also be in charge of the online marketing. The INKAcase website will be linked to all the involved schools’ Team Peru webpage. Also, INKAcase will have an online shopping platform to create accessibility and reach a larger potential market. Student Clubs at MIIS and Middlebury will have booths at on campus events to provide selling services and at the same time increase the publicity of the project. The marketing plan will be carried out starting from August 1, 2012 and throughout the whole year. Peak sales are expected to happen during the two orientation weeks at the end of August and the months of the new semesters. More focus will be put on the on campus selling channel at these time periods. During vacations and festivals, INKAcase will pay more attention on the market of gift giving and hold special sales events. Control Marketing Control Process: Objectives Assessment Diagnose 1. 2. Have the sales and traffic objectives been met? Why or why not were the objectives achieved? Increase Sales Increase Awareness Action What measures should be taken out to improve, is there a market? Marketing Information Collection: Customer purchasing information is acquired through a customer survey. Customers are encouraged to complete a survey upon purchase to learn: why consumer was attracted to INKAcase, how they discovered the product and whether it is a gift or for personal use. Also, market research will be conducted through surveys on local colleges and universities and farmer’s markets. A sample survey is located in Appendix D. A calculation and analysis of the online traffic will be used to demonstrate the effectiveness of the marketing campaign of creating publicity and awareness. This information will be calculated bi-annually and will also show peak periods of sales and activity. Assessment: Based on information from surveys, online activity and sales data, an assessment will be made to determine if the objectives were achieved. Sales in different channels (online and in-person) will also be compared and analyzed in order to better determine the future plan and focus. 11 Diagnose: Quarterly evaluations are conducted to ensure that the plan is going well and that adjustment can be made in time. Also, after every peak period and festival period, a summary of the market should be conducted for lessons learned. Action: If the set objectives are achieved, a new market shall be targeted. New marketing research and plan shall be based on the information and data accumulated in this year. If the objectives are not achieved, after analyzing the marketing data and information, adjustment of the market plan should be made in time so that the overall goal of the year could be achieved. 12 Budget The marketing budget for the Andean Alliance and more specifically INKAcase is almost nonexistent. Capitalizing on student participation and involvement in the projects are how the majority of outreach and marketing will occur. With the moderate sales of 50 cases a month the revenue per month will average $2500. However, based on the monthly cost breakdown in Table 4, only $5 of each $50 dollars goes towards management fees. The monthly revenue of $250 per campus will cover the stipend of the online marketing manager at $100 and the remaining $150 will remain for eBay account fees and farmers market table fees as well as the incentive bonus for groups selling more than the target 50 cases a month amount. The amount not spent will go towards savings for slower sales months. The most important aspect of the budget is the revenue of $6,000 which will go towards training new communities to weave INKAcases for expansion in 2 years. This will certainly increase sales as well offer more economic opportunity to more communities. Included in the technical training are courses on financial education to balance the increased income. Semi-annual Budget Revenues Case sales per month 6 month period sales EXPENSES Manufacturing: ($24/case) Case Shipping material Management Fees Marketing Manager stipend Online sales fees Savings Total Expenses (6 months) Total Revenue 50 $15000 $7200 $300 $600 $600 $300 $9000 $6000 Table 4 Monthly Project Revenue Projected revenue Sales (50 cases/month x $50) Expense Manufacturing ($24/fair trade case) Overhead ($1/case shipping material) Management fee ($5/case) Monthly profit $2,500 $1,200 $50 $250 $1,000 13 Summary The sales goal of averaging 50 cases a month is ambitious but it has been taken into account the amount of current interest and unmet demand on campus. Currently, sales are taking place without any marketing or efforts focused on sales and this detailed plan is strategic in where to place efforts and how to make adjustments when necessary. The additional and broader objective of increasing awareness about the brand of the Andean Alliance for Sustainable Development and the on campus club, Team Peru, is an important aspect to the sustainability of projects dedicated to this region. Also, with sufficient support, the program has the possibility of expanding to other areas in the world. This program offers the opportunity of professional experience for students but the opportunity for indigenous communities to become financially independent while preserving their native traditions and cultures. The important aspect of the marketing plan is the evaluation and monitoring of progress as well as documenting for future students and staff to continue using this plan as a guideline while constantly improving sales and brand awareness. The competitive advantage of being a one of a kind product with a socially and environmentally conscious product will ensure a welcome entrance into the market but a strong marketing strategy will ensure a lasting presence. 14 Appendix A: Data analysis of focus group research Customer 1: Hilda Diaz Age: 29 Hometown: San Pablo, CA Profession: Translator and Interpreter, Stanford Medical Center Annual Income: $50,000 “I am interested in buying an INKAcase because of the social responsibility aspect of the cases. Plus the design of the case is innovative compared to other similar products. Most importantly, I know my money will go back to people who really need it and communities well benefit from my purchase much more than if I buy another computer case. I think I will also consider buying it as a present for my friends or family on holidays.” Customer 2: Matthew Huters Age: 29 Profession: Graduate student, Monterey Institute of International Studies Annual Income: $20,000 “Not only do these laptop cases look nice, but the economic impact of my purchase will be helpful to the people who make them. Considering my financial situation, I find the price a bit high, but I know when I purchase this case I am contributing to someone’s well-being rather than to a shareholder’s portfolio.” Customer 3: Ellen Compernolle Age: 27 Profession: Ph.D Candidate, University of Michigan Annual Income: $25,000 “I would need to buy a laptop case anyway, but this option is pretty and serves a socially responsible purpose. But my laptop is 11 inches which doesn’t fit the current product size. Do you have various sizes other than 13 inches?” 15 Appendix B Table 5 INKAcase Labels INKAcase by in.di.go www.wix.com/IndigoCraftwork/InDiGo indigenous designs on the go In.di.go offers impoverished artisans a way to continue their craft and increase their income significantly. INKAcase is our first line of sustainable laptop cases with social value. The majority of the artisans we work with are women and the increase in income for these women will benefit the family as a whole. In general, women spend 90% of their income on their family. The traditional process for making textiles is great for the environment. Our weavers use natural plant dyes and renewable material. These products also aim to preserve local culture by promoting pattern designs that are unique to the specific community with which we work. Profits from the sale of this case benefit the poverty alleviation projects of the Andean Alliance for Sustainable Development. 16 Appendix C Organizational Structure Aaron Ebner Tina Novero Campus marketing Online marketing manager INKAcase Website eBay/etsy Selling MIIS Students Team Peru Middlebury Students Team Peru 17 Appendix D Customer Survey 1. Your Age: a. Under 18 b.18-25 c. 26-35 d. above 35 2. Your occupation:_________________ 3. Your average salary (yearly: a. Under $10,000 b.$10,999-20,000 C.$20,999-40,000 d. Above $40,000 4. What is your laptop accessory purchasing habit (as in frequency) a. Never b. rarely c. sometimes d. often 5. Which aspect(s) of the INKAcase interests you the most? (You can choose more than one). a. Price b. Design c. Quality d. Good cause (purpose) 6. What best describes your thoughts on the price of INKAcase? a. Too low b. appropriate c. too high 7. What best describes your thoughts on the design of INKAcase? a. Not satisfied b. ok c. very satisfied 8. What best describes your view of the quality of INKAcase? a. Not satisfied b. ok c. very satisfied 9. You consider “good cause” as a _________ element when purchasing INKAcase. a. Less important b. somewhat c. very important 10. How did you learn about INKAcase? a. INKAcase Website b. School Club c. Brochures d. Booth or Alumni Shop e. Friends 11. Would you like to introduce our project and product to your friend? a. Yes b. no If you leave your email address here, INKAcase will update you the latest events of INKAcase and inform you about how your purchase has helped to improve the lives of the rural women of Peru. Your Email Address:_____________________________________________ 18