With a marketing strategy, we aim to reach the right target audience and strengthen the company’s competitive position.
The benefits of marketing.
An effective marketing strategy offers businesses various benefits, such as increasing brand awareness, reaching the target audience, improving customer relationships, boosting revenue and profits, and standing out from the competition. It enables companies to achieve their goals, enhance brand visibility, and succeed in a dynamic business environment.
Market research
Market research is vital for business success. It involves gathering and analyzing information about customers, competitors, and industry trends to make informed decisions and find growth opportunities.
Demand
In the demand we see that KOR and OVE demand the most. We choose to produce ADV and TOP the most which isn’t the best decision demand wise because other demands are way bigger.
Product
We chose to produce TOP and ADV. We made this decision because these has the best prices with the best profit margins and the best technology level for our customers.
Audience
We see that the audience for TOP and ADV is really big. of course, it’s a smaller audience than the other products but these have the best profits.
Product
In a marketing strategy, the product is key. It’s the offering that meets customer needs and sets the brand apart. Understanding customer preferences and creating value drive success.
Period 1
In the initial period, it was decided not to acquire a second production unit, resulting in a total production of 26,000 units. The focus was primarily on producing TOP and ADV models since they offer the highest profit margins. In contrast, competitor A2 did invest in a second production unit and primarily produced BAS and TOP models. The competitor also produced a significantly larger quantity of BAS and GOO models.
Period 2
We purchased a second production unit, but we didn’t immediately increase production significantly due to our existing inventory. We produced 32,000 units and focused mainly on ADV and TOP models. However, we reduced our emphasis on TOP (25%) because we had a high inventory and didn’t anticipate increased sales. Additionally, we increased our focus on Bas models due to high demand.
Period 3
We produced 45,000 units because the previous period performed exceptionally well, and we sold nearly everything. We reverted to the percentages used in period 1 because we aim to sell a significant amount of TOP models this period.
Price
Price is a vital component of a marketing strategy. It influences customer perceptions and profitability. Finding the right balance ensures customer attraction and business success.
Period 1
We of course considered the product’s cost price and what the target audience was willing to pay. In period 1, we were able to use high profit margins, particularly for TOP (150%) and ADV (80%). Our cost price was not as high at that time.
Period 2
We examined our competitors’ prices and made slight adjustments to ours accordingly. Due to the high-cost price, we were unable to set our profit margins as high this period: TOP (100%) and ADV (60%). We aimed to have our TOP product priced below €600 for the best value compared to our competitors. Additionally, taxes were introduced in period 2, which influenced our pricing as we still need to maintain profitability.
Period 3
The cost of raw materials significantly increased, resulting in higher prices for our products. Initially, we aimed to keep our TOP product below €600, but eventually, we had to raise the price due to our competitors setting higher prices in the previous period.
Place
Place is key in marketing strategy. It’s about getting the product to customers efficiently and conveniently, through various channels and locations.
Period 1
We purchased two stores, one distribution center, and an online shop. We were unsure of the sales contribution from each sales point, but we had high expectations for their performance.
Period 2
Based on the results of period 1, we purchased an additional three stores and two distribution centers. We observed that stores had a significant impact on sales volume.
Period 3
In our results, we observed that our strategy from period 2 was effective. As a result, we purchased an additional three stores and two distribution centers.
Staff
Staff is vital in a marketing strategy. Trained and motivated employees enhance customer service and communicate the brand effectively, contributing to success.
Period 1
From the first period, a deliberate decision was made to hire a significant number of employees in the stores, recognizing the importance of having an adequate staff presence. It was believed that having a sufficient number of employees in the stores was essential for boosting sales.
Period 2
In period 2, the decision was made to acquire an additional production unit and expand the retail network. These expansions required an increase in the workforce to meet the growing demand. For the five stores, 11 sales representatives, 4 administrative staff, and one manager were hired.
Period 3
In period 3, we purchased an additional 3 stores. So, for our total of 8 stores, we allocated 20 sales representatives and 8 administrative employees. We still have only one manager and two production workers.
Promotion
Promotion is vital in marketing strategy. It involves activities to create awareness and persuade customers to buy. Effective strategies use advertising, PR, and digital marketing to attract customers and boost sales.
Period 1
In period 1, we spent a total of €1,000,000 on advertising. The majority of the budget was allocated to ADV and TOP as we aimed to sell them the most. We invested €300,000 each in TV1, as it generated the highest demand. The remaining budget went to Los Intelectos as it aligned with our target audience. We didn’t allocate much advertising expenditure for BAS and GOO, but whatever was spent also targeted Los Intelectos since it was beneficial for that audience. At the time, we were uncertain about the exact impact of advertising on sales.
Period 2
We spent €1,310,000 on advertising. Again, the majority of the budget, €450,000 each, was allocated to TV1 for ADV and TOP. The remaining funds were allocated to the newspaper Los Intelectos. We reduced the advertising expenditure for BAS and GOO this period, as we had limited or no inventory for those products.
Period 3
We spent €1,680,000 on advertising. As it was the final period, we aimed to sell everything, so we allocated a significant budget for advertising and produced a larger quantity. For both TOP and ADV, €550,000 was allocated to TV1, and €150,000 was allocated to Los Intelectos. This time, we increased the advertising expenditure for Bas (€120,000) and Goo (€160,000). The entire amounts were allocated to Los Intelectos.
