Marketing +1 Marketing Plan
Embed Size (px)
Transcript of Marketing +1 Marketing Plan
t e r r a r i Y U M designs
T a b l e o f C o n t e n t s
I n t r o d u c t i o n 3O u r P r o d u c t3O u r R e s e a r c h 5M a r k e t S e g m e n t a t i o n 6T a r g e t M a r k e t 7O u r P r o m o t i o n a l P l a n 7 O u r D i s t r i b u t i o n P l a n 9O u r E n v i r o n m e n t 10A p p e n d i x A : T w i g T e r r a r i u m s 14A p p e n d I x B : S a m p l e W e b s i t e 15
I n t r o d u c t i o n Terrariums are the in-home solution to growing sustainable, mini ecosystems that are easy to care for, and easy on the eye. These self-sufficient arrangements bring a slice of the outdoors inside, to our homes, offices, and businesses alike. Trendy, decorative, and adorable, terrariums add aesthetic appeal to any interior space. These pieces have the ability to provide nutrition for themselves, by creating their own, personal water cycles (Yum!). This aspect of sustainable nutrition is exactly what resides at the core of TerrariYUM Designs. TerrariYUM Designs seeks to provide customers with unique, custom-designed terrariums that satisfy their creative visions, and allow for easy, periodic care. With an increased need for convenience among the majority of consumers, the ability of terrariums to remain self-sufficient increases consumer benefits in this regard, when compared to their conventional product counterparts. TerrariYUM Designs believes that terrariums are the houseplants of the future, and the following marketing plan represents just how they plan on contributing to this transitional movement towards sustainable living practices.
O u r P r o d u c t TerrariYUM Designs creates customized succulent and cacti terrarium arrangements that are delivered direct to consumer, via terraritum.com. Rather than a completely build-to-order production system, TerrariYUM operates under a postponement production system, which will be discussed in greater detail in the distribution component of this plan. This postponement system is able to be used due to the way in which TerrariYUMs customization process functions. TerrariYUMs online purchasing platform features a selection process model. The customer first chooses a terrarium (the actual glass planter that will hold the other components). The customer has four different terrariums to choose from: a cube, a pentagonal prism, and two different triangular prisms (one small and one large). Next, the customer chooses the type of plant that they wish to house in their terrarium. Rather than choose the exact plant, customers choose between either a set of cacti, a set of succulents, or a combination of the two (sold in pairs). Exact plants are not promised for two reasons, the first being the fact that availability of certain succulents and cacti is not always guaranteed during all seasons, making it virtually impossible to promise customers exact plants. Secondly, this process eliminates an element of a possibility of dissatisfaction among customers. Rather than promise consumers something that is not definite, TerrariYUM eliminates this potential source of customer dissatisfaction through the limited options offered. After selecting the type and quantity of plants, the customer then selects the color of pebble to go in the bottom of the terrarium. All orders receive a sealed package of soil, along with the contents of their customized order. These items are shipped disassembled, to prevent potential damage and accidental dismembering of the parts. However, each order comes complete with assembly directions and plant-care information. This customized purchasing platform is further exemplified in Appendix B. A partially-customized production system provides benefits for both the customer and business. Modern consumers want to feel not only that they have a part in the production of their products, but that they are special and meaningful to their preferred places of business. This platform not only allows customers to build meaningful relationships with their customized products, but with the company making these customized products. This platform allows for sustainable CRM, an aspect of business that continues to grow in importance for the majority of businesses.
O u r R e s e a r c h Marketing research enables firms to efficiently understand and attend to their intended target audiences preferences and needs. Since TerrariYUMs sole product is relatively new to market (perhaps more of a repositioning of the product, rather than product invention), market research is of utmost importance in determining the potential consumer behavior in regards to this product. In order to determine more information about the potential target market, the perceived value of the product must be determined. Although TerrariYUM sees a value proposition in the product that they manufacture, it is unclear whether or not customers will perceive this same value. Because of the nature of this product (trendy, relatively new concept), perceived value needs to be determined, including the price at which consumers are willing to pay, and the presence of affinities towards possible substitute products. Determining the price that consumers are willing to pay relates back to both the identification of a target market, and development of a marketing mix (price). Determining the price of a product like this requires considerable research on the possible substitutes for this product. For this reason, I believe that a virtual shopping simulation would be beneficial in determining both an acceptable price, and the relevance of substitutes. These simulation reflect the actual challenges that brands have in competing with others in retail settings. Data collected from this type of marketing research would give TerrariYUM a better understanding of indirect and direct competition, as well as the prices that consumers are willing to pay for such products.
Market SegmentationMarket segmentation allows for better execution of a marketing mix that fits a target markets needs. In order to encompass all possible cross-sections in the potential customer base of TerrariYUM, it is important to take into consideration all of the segmentation bases before selecting which to utilize. Because of the nature of this product, TerrariYUM should utilize the demographic and psychographic segmentation bases. In terms of demographic segmentation, both age and income segmentation could be considered useful in determining a target market for TerrariYUM. Age is a useful segmentation factor in this case because of the trendiness of this product, and the technology-based purchasing model. These two aspects of the products align with the ideals of the millennial market. Income segmentation is also useful, due to the fact that this product is neither a commodity nor necessity. As a shopping good, this product requires the purchasing power associated with disposable income. The psychographic segmentation base is also useful in this case, particularly in regards to lifestyle and motives. TerrariYUM emphasizes the notion of sustainable living practices. Those whom lead health-based lifestyles may be enticed by the aspect of sustainability that this product emphasizes. This product may also act as a motive to contribute to the movement towards more sustainable living practices. Additionally, in terms of lifestyle, this product is great for those whom either have little outdoor space of their own, or live in small living spaces (both aspects of urban living). Terrariums invoke a sense of nature while taking up much less space than traditional houseplants.
Target MarketUsing the specific segmentation factors mentioned above, determining a target market becomes simpler. Due to the technological nature of the purchasing platform, in combination with other certain aspects of the product itself (trendiness, modernity, need of disposable income, and ode to sustainability), the target market for TerrariYUM products can be identified as young professionals (disposable income) of the Millennial generation (technologically savvy) with concerns for both the environment and their health. Although important to never discount the possibility that other consumers would also enjoy this product, identifying a target market based on the specifications of the product allows for better execution of promotional efforts, as well as distribution and price.
O u r P r o m o t i o n a l P l a n Promotional mixes dictate that ways in which a company or brand communicates with its customers. There are many different forms of promotional tactics, including advertising, public relations, personal selling, sales promotion, and social media. Now that TerrariYUMs projected target market has been defined, a promotional strategy can be formed.TerrariYUMs potential target market consists primarily of millennials. Millennials are the most tech-savvy generation comparatively. Our text claims that two-thirds say a brand being on social media shows it cares about their generation (Lamb 55). Therefore, TerrariYUM should take advantage of the numerous marketing opportunities available through social media and digital advertising.Marketing budgets dedicated specifically towards digital advertising are increasing across many industries and firms. Since cost per contact is low in comparison to other methods, such as personal selling, advertising via online platforms could be very beneficial to TerrariYUM. With over 70% of millennials checking their social media at least once a day, using this form of promotion provides clear benefits regarding reaching its target market. Social media as promotion, in general, has a few beneficial characteristics, including immediacy of communication, two-way communications, and many opportunities to directly reach target markets. In order to build a relationship with customers through online communications, TerrariY