Strategic marketing planning

St tempogic merchandising envisionningThe straitlaced application and implementation of a strategic merchandiseplaceing plan is essential to the supremacy of any business. A company prat have a perfect product, but without proper placement, identifying an audience and a trade plan appropriate activity would not be adapted to market its products to consumers.Watawala Plantations PLC was able to convert an activity performed in the home of moneymaking(prenominal) success through the implementation and respect of its strategic intentions. The company was able to convince consumers that the store offers more(prenominal) than just afternoon afternoon tea, but rather a abounding experience they should have on a recurring basis. The company was able to translate this consumer experience of its products for an extremely lucrative.This strategic marketing plan ordain hash out the marketing strategy implemented by Watawala Plantations PLC, and evaluate the plan of the company i n the current marketing strategies including market segmentation, targeting strategies, positioning, the competitive environment, and various other factors that locomote its marketing strategy including external macro environmental forces.Table of contentsTitle Page.1.0 Introduction 042.0 Watawala Plantations An Overview 052.1 Company Background 052.2 boot, visual modality Corporate Values 062.2.1 Mission 062.2.2 Vision 072.2.3 Corporate Values 073.0 Product Description Oolong Tea 084.0 Construction of SWOT A Situational Analysis 085.0 merchandiseing Objectives 106.0 Market Segmentation, Target Market and Positioning 106.1 Market Segmentation 106.2 Target Market 116.3 Positioning 117.0 Macro environmental Analysis PEST Factors 128.0 The Marketing amalgamate 4Ps 148.1 Product 148.2 hurt 158.3 Place ( diffusion) 168.4 progress 169.0 Proposed Marketing cipher 1710.0 rating and Control 1811.0 Bibliography 191.0 IntroductionToday in the rapidly changing corporate arna one of the frequently spoken subject is beseeming the Strategic Market Planning and many expensive reference materials fanny be commonly seen in bookstores, libraries and via online sources. But what exactly is Strategic Marketing Plan, how to judge the external macro environment? What are the impacts of political, economic, socio-cultural and technological factors have on developing Strategic Marketing Plan? These are some of the common questions to be answered.Without a clear strategy the scheme is like a ship without a rudder, going around in circles. This strategic marketing plan hustling to Watawala Plantations PLC is essential for the newcomer Oolong tea to the market. Oolong Tea is an innovative product that is close to the tea and mysterious tea, and this product can be a cleaner body. This strategic marketing plan will discuss the marketing strategy implemented by Watawala Plantations PLC.It is very much evident, that the strategic marketing plan for Watawala Plantations PLC has been successfully accomplished after gaining a substantial understanding from the various reliable sources where the information have been gathered.I strongly feel that the information that I have provided in this strategic marketing plan will definitely satisfy the assessment criteria. Last but not the least I wish to mention that, at the best of my knowledge, Ive acknowledged tout ensemble the sources which I did refer to complete this strategic marketing plan.2.0 Watawala Plantations An Overview2.1 Company BackgroundWatawala Plantations PLC is a pioneer tea plantation and marketing company in Sri Lanka. This is a listed company is a joystick venture with the legendary Tata Group, which owns the No. 1 tea brand in Britain Tetley. Today Watawala plantations PLC has undertaken the anxiety of selected 18 prime tea estates in all elevations of low-rise, medium-and high-grown along with a pair of rubber plantations, and the Sri Lankas only palm oil factory and employs over 15,000 people.With the joint venture in Tata Tea India, Watawala Plantations PLC has accepted the challenge of converting trade and productivity in to competition. The unique advantage of three diversified namely crops, tea, rubber and palm tree has made the company to move in several(predicate) directions in terms of involvement with the daily biography of people in Sri Lanka. Total area of plantations is shared region 12,442.13 hectares, of which 41% is the tea, rubber is 18% and 8% less for the cultivation of oil palm. About 7% is separate for firewood and the rest is uncultivated and remains as the areas of conservation, forestry, spices, vegetable cultivation, jungle, buildings, roads, etc.2.2 Mission, Vision Corporate Values2.2.1Mission Statement correspond to David (1995, p.88) a business mission can be classified as the rump for priorities, strategies, plans, and work assignment. In other words it can be said as the starting point for the build of managerial jobs and , above all, for the design of managerial structures. A mission statement which focuses on a businesss current activities reveals the long-term vision of an organization in terms of what it wants to be and whom it wants to serve.The Mission Statement of Watawala Plantations PLCBy the family 2015 we will get closer to our end user locally and internationally byAdding value to our products (tea, rubber, palm oil)Being committed to producing quality products utilize our own brandFully utilize the technological advancements and land resources in an eco-friendly mannerTo respect and understand the community in which we do business notice the diversity and the power of our peopleWhile continuing to,Be the preferred supplier in tea, rubber, palm oil globallyEnhance return to our shareholders2.2.2 VisionA strategic vision concerns a firms future business fashion that is where we are going. Companys vision defines the desired or delegateed future state of an organization or company in res pect of its basic objectives. Vision is a long-term sometimes describing how the organization wants the world must stay where it operates. The primary use of goods and services of a companys vision is to establish a dream to all its employees and stake holders to achieve the companys corporate goals.The Vision Statement of Watawala Plantations PLCWe will take a path no one has walked before and many will want to follow2.2.3 Core ValuesWatawala Plantations willEnsure that our business is always customer pore and that we continuously strive to twin their demands with the highest level of service.Be committed to offering the highest quality products at all times to our customers globally.Recognize and motivate our employees who are the die hard wire of the organization, to achieve their fullest potential and provide equal opportunities regardless of gender, religion, race or colour to excel in their work.Value transparency and honesty in everything we do.Contribute positively to th e long term sustainability and development of the external community and the environment we operate in.Be innovative and strive for continuous improvement in whatever we do.Recognize that our shareholders are of utmost importance to us and ensure the best possible returns to them.3.0 Product Description Oolong TeaThere are hundreds of different varieties of tea made from tea plant, Camellia Sinensis, but almost all of them is divided into three blanket(a)er categories which are respectively black teas, which are fully oxidate before drying a careful fermentation process, green tea is dried quickly, while non-oxidized oolong, which is somewhere in the middle and combine the best features of both. Oolong is partially fermented (semi-fermented) tea, which is know for its rich taste and pleasant lasting aftertaste. Oolong is classified as black or dark green tea which is baked longer than leafy vegetable Oolongs. Green Oolong is usually smells stronger as Dark Oolong is usually has a stronger aftertaste. Special oven baked Oolong is only an intermediate dark green.4.0 Construction of SWOT A Situational AnalysisAccording to David (2004, pp.156-158) no organization is equally strong or weak in all its functional areas. Objectives and strategies are established with the intention of groovyizing upon internal strengths and overcoming weaknesses. The boilersuit valuation of a companys strength, weaknesses, opportunities, and threats are called as the SWOT abridgment.A SWOT summary is use as a framework to help the firm to develop its overall corporate, marketing, or product strategies. Strengths and Weaknesses are internal factors, which are controllable by the company. Whereas, Opportunities threats are external factors tend to be uncontrollable by the organization. The SWOT analysis of the Watawala Plantations PLC can be illustrated as followsStrengthsUniqueness of the product Benefits of product are outstanding and not offered by any other product/company .Brand cognisance high up quality tea eminent quality serviceExpertise on the tea businessEntrepreneurial spirit and commitmentComplete and broad trained staffOpportunitiesCan open new lines of businessMass market tea wrongs will stabilizeConsumers are living a more healthy lifestyleConsumers prefer quality products that offer true valueModern technology in the tea industry will be able to accession productivityGrowth in tea market due to promotional materialal efforts of healthy attributes of teaThreatsSeasonal demandMisperception of tea consumption opposition from coffee shopsLimited number of raw materialsUnstable tea supply of high quality teaHigh quality tea prices will increase moderatelyTea market is very competitive and relative elastic where strong local competitors such as Lipton, Bogawanthalaweetc.SWOTANALYSISWeaknessesBudget deficitsLess access to modern technologies with to Oolong tea manufacturing process5.0 Marketing ObjectivesAll businesses, as a rule, need to p ut objectives on their own, for the products or services they intend to launch. Setting objectives are important because they focus on specific aims over a period of time and can motivate the staff additionally to meet the set objectives. The marketing intention Watawala Plantations PLC is to grab a 10% market share and to achieve a sales volume worth of SLR 2,500,000 during the current year 2011.6.0 Market Segmentation, Target Market and Positioning6.1 Market SegmentationAn organization cannot satisfy the needs and wants of all consumers. To do so, may result in a massive drain in company resources. Segmentation is simply the process of dividing a particular market for a good or service into sections, which give away similar characteristics or behavior. There are a number of segmentation variables that allow an organization to divide their market into homogenous groups.There is no hotshot way to segment a market. A good marketer has to try different segmentation methods, either a lone or in combination, in entrap to view the market structure clearly. Segmentation can be categorized in to four major variables. They are geographic, demographic, psychographic and behavioral variables.It has to be clearly unsounded that Watawala Plantations PLC has utilized the demographic segmentation variable to divide the market. In demographic segmentation, the market can be divided in to groups such as age, gender, income, family size, family life cycle, occupation, education, race, religion, generation, nationality and social class.But here Watawala Plantations PLC going to consider only the first three groups from the demographic variables as described above. It is very much evident that in particular, the demographic segmentation variables have been chosen because of two reasons. One is that, customer wants, preferences, and usage rates are often associated with demographic variables and the other is that the demographic variables are easier to measure.6.2 Target Marke tTarget Market is the specific group of customers that a company aims to capture. They have been identified as the people with needs or wants that can be met with the products or services from the company. When evaluating the market segments, Watawala Plantations PLC must look at three major factors. They are segment size growth, segment structural attractiveness, and companys growth. Considering these aspects Watawala Plantations PLC has heady its target group as anybody who is interested in good quality tea. Mass market is the strategy of the company aiming to sell their product to broad market in Spain.6.3 PositioningAfter an organization has selected its target market, the next stage is to decide how it wants to position itself within that chosen segment. A products position is the complex set of perceptions, impressions, and feelings that consumers hold for the particular product compared with the competing products in the market. As marketers, Watawala Plantations PLC not on ly plan positions that gives our products the greatest advantage in selected target markets, but also we design marketing mixes to create these planned positions. Therefore Watawala Plantations PLC is going market its Oolong Tea under its renowned positioning theme THE ART OF TEA7.0 Macro Environmental Analysis PEST FactorsAccording to David (2004, p.114) the part of an external audit is to develop a predetermined list of opportunities that could benefit the firm and threats that should be avoided. The Relationship amongst Key External Forces and an organization can be illustrated as followsTherefore while formulating business strategies, Watawala Plantations PLC should be able to respond towards the external macro environmental factors in order to take the maximum advantage of external opportunities or that minimize the impact of potential threats.PEST analysis is a framework used to scan the external macro-environment, in which a firm operates. It is an important aspect to a co mpany, in order to begin the marketing process. The following gird represents the analysis of the political, economic, socio-cultural and technological factors Watawala Plantations PLC has to consider before deciding either Germany or Australia would be potential market to expand the fruity malt loaf product. The grid below examines the political, economic, socio-cultural and technological factors with regard to the potential impact and its relative importance towards Watawala Plantations PLC.PESTAnalysis FactorsPotential ImpactRelativeImportancePolitical FactorsStrict job policies specialtyImportantFunding grantsMediumUnimportantLocal pressure groupsHighUnimportantGovernment policiesHighImportantPolitical influenceHighImportantEconomic FactorsEconomic structureCommand Economy prices are determined by the governmentImportantTaxation issuesTotal tax rate is 64% on ProfitCriticalInterest rates3.0%ImportantInflation rates9.4%ImportantSocio-culturalFactorsConsumer attitudesHighCritica lConsumer opinionsHighCriticalMedia viewsHighImportantBrand imageHighImportantBuying access and trendsHighCriticalHealth consciousnessHighCriticalReligious factorsMediumImportantTechnological FactorsTechnology developmentHighImportantResearch fundingMediumImportantRecycling systemsMediumImportant8.0 The Marketing Mix 4PsTo achieve the marketing objectives, the company has to use the marketing controllable elements (4Ps) effectively. A company might adopt one or more marketing strategies when introducing a product newly. It can set a high or low-level trend for each of its marketing variables, such as price, promotion, distribution, and product quality. Therefore, the key elements of the marketing mix namely product, price, place (distribution) and promotion have to be utilized Watawala Plantations PLC as follows8.1 ProductA good Oolong tea is refreshing and delicious the Oolong spectrum has a range of aromas and tastes quite different from what you get with green or black tea. It i s difficult to obtain reliable figures on the caffeine content, but its probably not entirely wrong to say that the cup of Oolong average, well mixed, has about half as much caffeine as a cup of black tea and about half again as much as a cup of green tea.The difference mainly comes from the brewing temperature, not the composition of the tea itself. Although Oolong has the characteristics of black and green tea, the taste has little in common. If not overcooked, most Oolong seems almost no trace of bitterness, and generally a stronger aroma than any black or green tea. Like other tea, Oolong is rich in antioxidants called polyphenols. These help prevent cancer, keep your heart healthy and aid general well-being.8.2 PricePrice can be simply defined as the amount of money charged for a product or a service provided. A companys price decisions are accepted either by internal factors relating to the company or external environmental factors or both.The major external environmental fac tor, which is going to affect the pricing decision, of Watawala Plantations PLC depends on the competitors costs, prices and their possible reactions in relation to the price fixing modes of Watawala Plantations PLC. A consumer when deciding to purchase our Watawala Plantations PLCs Oolong Tea, at the first instance evaluate the price and value of other products, which compete with Watawala Plantations PLCs products.Considering these pricing factors Watawala Plantations PLC should to apply the market penetration pricing strategy, meaning, to fix a low initial price at the entre stage, in order to penetrate the market successfully at the outset. This is due to the fact that, it is an ideal pricing strategy which can be applied with success at the introductory stage itself, to attract a large number of buyers quickly and effectively so as to win a large market share, in a short period of time. Upon successful launch of Oolong tea, Watawala Plantations PLC can adapt skimming strategy. 8.3 Place (distribution)The distribution modes will cover all areas and all consumers coming under the target group. This is certain as the popularity grows with the demand. A competent distribution strategy will enhance the chances of attaining the goal with easy reach. Through maintaining proper contacts and application of the experience and specialization in the trade and through insuring a steady supply of goods without shortages the reach is assured with satisfactory results.Over the appointment of distributors and agents for the purpose of popularizing the product, requirements and competence in promotion, experience, market familiarity in relation to the productsetc. In addition to the distributors, a careful consideration will be given towards selecting the distribution strategy. In this case an intensive distribution strategy will be utilized where it is expected to bring in quick and satisfactory results.8.4 PromotionPromotion is one of the key elements in the marketing mi x. The intention now is to inform, persuade and to familiarize Oolong tea to the market and to popularize it. In this regard sales promotion and pre publicity are two areas, which are related to public relations. To target the group, pre publicity is essential via the media namely the electronic and the print. It is through proper and efficient advertizement methods, the target group mainly the consumers would be reached easily which we intend to employ. The channels, which we hope to utilize both in TV and Radio in addition to the press, will be chosen based on their popularity and result-oriented methods adopted. In this regard a careful consideration would be given to economize the expenditure for the promotion purpose. In addition to the above method e-marketing strategy will also be utilized via social media networks such as Twitter, Facebook. YouTubeetc.9.0 Proposed Marketing BudgetA financial plan will be carried out since the initiation of the strategic marketing plan in or der to determine the total amount of capital needed for each marketing related activity and to be completed within stipulated investment limit, which allows the marketing manager to measure the past with the forecasts actually played out during the project. Figure A illustrates the proposed marketing budget for Watawala Plantations PLC.Figure ADescriptionAmount(SLR)Amount(SLR)Estimated Sales10,000,000(-) Estimated ExpensesRaw Materials500,000Sales Distribution400,000Financial Expenses200,000HR Administrative Expenses150,000Production Cost1,450,000Promotional Expenses (posters, banners, advertisementsetc.)4,500,000Transportation300,000Estimated total expenses(7,500,000)Estimated profit2,500,00010.0 evaluation and ControlWhen involving in introducing a new product into the market, it becomes necessary to plan the overall operation in advance, in addition to budgetary provision to carry forward the objective. The controlling and monitoring aspects are two areas, which need everla sting attention. Any deviation will tend to upset a proper implementation of this strategic marketing plan. Therefore the following action plan can be utilized by Watawala Plantations PLC in order to evaluate and control the strategic marketing activities.Marketing StrategyActionResponsibilityControl and EvaluationMethodologyMarketingCommunication beseechAdvertisementon TV,internet, radio,newspapers,ad campaigns onthe streetsMarketingManagers, Marketing ExecutivesMonthlySales FiguresMarketingPromotionCampaignSet Up SpecialStand for PersonalSellingMarketingManagers, Salesmanagers,Counter staffSupervisorsCount CustomersandMonitorSales per Month calculatePromotionalEvent Major CitiesMarketingManagers,Supervisors,HostessesCountParticipantsPromotionaloffers e.g.free gifts withpurchaseMarketingManagers,ProductionManagersProducedOutputFiguresDistribution ofFreeSamples toCustomersAt exchange pointMarketingManagers,Cashiers,SupervisorsCountCustomers