Download success metrics, contingency plan and reasuring words

RUNNING HEAD: PHASE 5 DISCUSSION BOARD
KENNETH C HOLMES
MKTG630-1502B-03
PROFESSOR GENE TOPPER
JUNE 21, 2015
GAUGING SUCCESS AND ADDRESSING ISSUES
Introduction:
MM is now in the final phase of “THE HIPSTER”. All aspects from design to
distribution have been addressed, and it is time to determine how MM will gauge the success of
the new smartphone, establish contingency plans, and provide encouraging words to help
Michelle Dietrich feel comfortable the plan will work. This document addresses these issues and
will hopefully ease any tension regarding the final plan.
Gauging success:
As with any project, there must be metrics in place to determine the level of success. The
metrics used to gauge THE HIPSTER’s level of success will include: MM’s sales. Based on
their current sales level of $2.75 billion, their sales goal is to achieve $5.5 billion. This number is
based on the sales of the previous line, and 12 million of “THE HIPSTER” sold at retail for $229
with contract, and is achievable since the smartphone is potentially appealing to several
demographics; MM’s market share percentage. Based on their current market share of 5
percent, their goal is to achieve a 10 percent market share, with any percentage over 10 a plus;
MM’s customer base. Based on their current customer base of 12 million, their goal is to
achieve a customer base of 24 million. This number should be achievable since the target
markets are pre-teens, teenagers and their parents, is potentially be appealing to consumers 20 to
24 years old, and only estimates purchases from five percent of the target demographic; and
lastly, MM’s customer awareness. Based on their current customer awareness of five percent,
the goal is to achieve customer awareness of 25 percent. The mission is to build curiosity and
excitement about MM’s next big launch, and with extensive advertising and distribution this
should be achievable (Pearson Education Inc. , 2015).
Contingency plans:
All well planned marketing strategies require contingency plans to adjust the 4 P’s
(Product, Price, Promotion and Place), and address shortcomings in set goals, in the event things
do not go as planned the contingencies include: For product configuration, if design and/or
technology are an issue, MM will provide the enhancements and distribute the changes as “THE
HIPSTER 2”. If color choices are an issue, MM will add the additional desired colors to the
selection in a prompt and timely manner, and ensure quick shipment to our contracted retailers;
For price configuration, the price is set based on its 100 percent environmentally approach, and
is compatible to similar smartphones on the market. In this case a price reduction will give the
consumer the impression it is of low quality, or MM is desperate, neither of which are true. To
counter concerns, MM will reinforce the quality, durability, and environmentally friendly
construction. MM will also run seasonal and holiday promotions to invigorate sales; For
promotion configuration, MM is using a combination of media including MM’s own website,
contract retailers websites, social media sites, and advertising banners, as well as radio,
magazine, newspaper, and billboard advertising. Television advertising will be applied if the
budget allows. If there is an issue with advertising effectiveness, MM will determine where
advertising is strongest and maintain or increase the use of that media, and reduce or eliminate
the least effective media. For example, if billboards are proving ineffective, but magazine
advertising is strong, MM will eliminate billboard advertising and maintain or increase magazine
advertising; and lastly, for place configuration MM is using a combination of MM’s own
website, contracted retailers websites, and well establish retailers including: Best Buy, Walmart,
Target, Sam’s Club, Verizon stores, T-Mobile stores, AT&T stores, Sprint stores, and Metro
PCS stores. If MM’s website is underperforming, MM will increase advertising to the website,
which will increase traffic to the contracted retailer stores, since internet advertising is far more
affordable. If a contracted retailer is underperforming, MM will determine the reasons why, then
educate that retailer about MM’s product and mission, and ensure all necessary advertising and
promotional material are provided. If education and promotional materials are not the issue, then
MM will reduce that retailer’s inventory, and increase the shipments to retailers that are
performing properly (Pearson Education Inc., 2015).
Confidence coaching:
To help Michelle Dietrich feel more comfortable with the marketing plan the following
suggestions should provide her the necessary confidence in the program: First, every CEO must
understand that introducing a new product requires ambition, courage, and the ability to take on
risk. There is no doubt Michelle has these qualities or she would have never achieved her current
level of success. The most likely scenario will be that MM employees will consider her a hero
for raising MM to the next level of competition, and achieving what most cellular manufactures
are not completely addressing, completely sustainable product and production; Next, for MM to
design a new line of cellphones to compete in the current cellular landscape requires the same
risk Michelle took when starting the company. The difference now is the new line will provide
MM the ability to compete with larger competition, and will only improve MM’s consumer
perception, and increase MM’s brand awareness as a producer of quality, durable, and
environmentally sustainable cellphones and accessories; and lastly, the new cellphone and
packaging being manufactured from 100 percent recycled, alternative and sustainable materials,
and produced in the U.S. represents the start of a line of cellular products that no other company
is undertaking. This is a step into the future to be proud of, raises the bar for cellular product
manufacturing, and creates the benchmark for all other cellphone manufacturers to follow.
REFERENCES
Pearson Education Inc. . (2015, May 30). Live Chat 4. Retrieved from
www.ctuonline.edu/5.30MKTG630_03_215_6_3_0_2
Pearson Education Inc. (2015, may 23). Live Chat 2. Retrieved from
www.ctuonline.edu/5.23MKTG_630_03_215_6_3_0_1