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Were the components clear and well defined – target market, positioning, 4 P strategies?  Did all parts of the proposal mesh together?  Did the Group strongly convey their new business idea?  Was it convincing?  

Did they create interest, create rapport, hold audience’s attention?

Target Market

The new shoe company for which the Marketing Plan will be prepared is a shoe company. The company offers a large product line with respect to the shoes and has an offering for both male and female customers. Primarily popular for its leather shoes, the company will be looking out to cater the audiences by offering them with products like sports shoes, party shoes and other casual shoes. The main target market of the company will be Vancouver.

The macro environmental analysis of Sparx can be done by making use of the PESTLE Analysis whereby the different factors like that of Political, economic, social, legal, environmental and technological will be analysed.

  • Political: The governmental policies always have a key role to play in the firm and the government a Vancouver which comes under the government of the United States is quite supportive of new businesses and would want the business to grow accordingly.
  • Economic: There has been a considerable rise in the labour as well as production costs due to the economic downturn and inflation which shall have an impact on the operations of the firm.
  • Technological: There have been various innovations in the field with respect to the production as well as the marketing strategies using artificial Intelligence and social media which can be taken advantage of by the firms.
  • Social: The choice of the consumers has changed accordingly and the different customers have become more brand conscious and would like to prefer quality over the quantity and thus for this reason, it is crucial that Sparx engages in efficient products.
  • Legal: There takes place a large number of legal obligations which a new firm in Vancouver would be required to abide by all these legal regulations in order to ensure successful business at large.
  • Environmental: The different environmental aspects like emission of greenhouse gases and other related pollution concerns need to be taken care of by the firm.

According to the report of Marketwired.com (2018), the Canadians have purchased a considerable amount of shoes and the size of the market can be considered to be effectively large. Various brands like Native and People Footwear are effectively popular but there exists brands like Blundstone and Santana which are also purchased. The shoe brands offering classic footwear like the Birkenstock Gizeh Birko Flors and the Converse Chuck Taylor have also been a popular choice of the different customers. The revenue segment has been US$106,010m in 2018 whereby the revenue for the current user is around US$68.30.

There has been a considerable growth rate in the shoe market whereby the growth has been inclined more towards the online purchases whereby around 32% of the purchases were made online. The mobile purchases have also increased considerably by 21 percent since the year 2015. According to Statista.com (2018), the market has been growing considerably and there has been a growth of 8.1% which means that the market volume will become US$156,529m by 2023.

  • The Canadians have purchased boots more than the other types of shoes and a total of approximately 44000 pairs of shoes were purchased in all major Canadian cities.
  • The shoppers now prefer to sell online as well
  • The Canadians are keen on purchasing the running shoes as well as per the data of 2016/

The two major competitors of Sparx can thereby be stated to be the Native, People footwear and Blundstone.

The SWOT analysis can be stated to be a useful tool when a business needs to analyse on its own strengths as well as weaknesses.The analysis also contributes towards the understanding of the Opportunities as well the Threats which exist in the business environment and may be useful to consider. The SWOT analysis of Sparx has been done as follows:

The strengths can be described as the capability of the business which will assist it in having a competitive edge in the market. The strengths of Sparx have been given as follows:

  1. The Sparx Company is highly competitive in nature and has an access to a wide number of resources which can be made use of due to the growing nature of the particular market.
  2. The Human resource department of the Sparx ensures that the different employees who are hired are all qualified and work for the welfare of the firm. In this way, they are able to assure that their employees work hard. Moreover, Sparx uses the latest technology for hiring.
  3. The Sparx has a good operational base with respect to which it is essentially able to ensure that the firm engages in considerably suitable activities which will then help them to attract the different customers. Moreover, its equation can be stated to be considerable because it functions in a competitive market.

The weaknesses can be stated to be the shortcomings of the firm and a firm which wants to attain success in the long run has to overcome these shortcomings which will then assist them to perform well. The weaknesses of Sparx are as follows:

  • It is a new firm and for this reason it lacks popularity which may have been good for the firm.
  • The start-up costs have been considerably high for the firm which has had a profound impact on the finances and thereby limits any off limit spending.  
  • The shoe market in Vancouver is combatively quite competitive in nature which can then phase out the initial operations of the firm.

Product Strategies

The opportunities can be stated to be the positive factors which exist in the business environment and can thereby impact the firm in a positive manner. The different opportunities to which Sparx is exposed to have been given as follows:

  • The company can enter into the online domain which is considerably popular in Canada and this way it will save considerable costs as well which shall ensure that the firm is able to gain a larger market share. Sparx needs to ensure that it is successfully able to take the advantage of the growth.
  • The environmental concerns around the globe have been increasing and hence, with respect to this, Sparx can come up with a new idea or a product development means to become popular. This will ensure hire sales for the firm.
  • The firm can engage in brand building opportunities which shall then help it to perform well. This opportunity would give Sparx a chance to ensure success.

The threats can be described as the negative factors which are present in the external environment of the firm. The different threats as faced by Sparx has been given as follows:

  • The business environment has become highly competitive and the company faces competitors from all over the competitor due to the rise of the use of internet technology. Sparx needs to ensure that it is able to strategize adequately in order to ensure that the competitive factors are taken care of.
  • Moreover, there are various competitive laws which are imposed by the government and can thereby have an impact on the firm`s operations.

The objectives of Sparx can be stated to be as follows:

  • Sparx aims to ensure that it is able to attain a sales of 10000 units in one year.
  • It wants to attain a sales of  $50000 in the first year
  • It aims to get into the e-commerce domain by 2020
  • Moreover, it also aims to expand its operations by opening 10 stores in the first two years.
  • It aims to recruit around 100 employees in the second year of its operations.

This section of the report will lay down the critical aspects of the Marketing Plan of the Sparx shoe company which will comprise of the components like the Target Market, Product strategies, Pricing strategies, Promotional tactics and the Distribution strategies which are required to be used by Sparx and which will go a long way in assisting the different members of the firm to decide upon the business dynamics which they are required to take into consideration.

The target market can be rightfully defined as that section of the business which the firm aims to target at large. There are various mediums through which a company can segment the different markets and based on this segmentation and the choice of the firm, it targets a specific set of markets. These mediums with the help of which the target market can be selected are mediums like geographic, buying power, demographics as well as psychographics segmentation. The target market forms the essential focus of the market plan as all other products and marketing mix segments can be designed based on the target market of the firm. These are the customers which are selected by the company to serve. Sparx has selected the following target market for itself in the beginning of its operations and it has planned to expand its operations in the future and thereby thinking about expanding its target market but at present the following target market has been selected:

  1. Formal shoes for the businessmen or the office goers: As Sparx primarily specialises in the leather shoes, it is suitable for the firm when it offers the different businessmen with specialised shoes for office goers. In this segment, it will be specially catering to the men`s wear and also have some formal shoes for the women. The percentage of consumers for these shoes will be 30%. The estimated dollar value of the market is around 75$ per head.

Basis of segmentation:

Demographic: Career, age

Psychographic: Comfort and choice 

  1. Sandals Women from the age of 15- 50: As this is the age when young ladies like to flaunt their style and make a statement, the company will be offering heels and sandals for them, it will be beneficial for the firm. The percentage of consumers are 40%. The estimated dollar value of the segment is around $ 100 per head.

Basis of segmentation:

Demographic: Age, gender, purchasing power

Psychographic: Trends and choice of the consumers 

  1. Kids below five years of age: Sparx will also specialise in making products for the children below the age of 5 years.  The market size is 10% and the estimated market value of the segment is around $20 per head.

Basis of segmentation:

Demographic: age

Psychographic: Comfort and choice

  1. Sandals for women above the age of 60: Moreover, as Sparx specialises in leather shows as well it aims to make comfortable sandals for the women aged above 60 years old. The market percentage for this segment is around 5%. The estimated market value is around $70 per head.

Basis of segmentation:

Demographic: age

Psychographic: lifestyle and choice

  1. Fashion shoes for individuals of all ages: In addition to this, Sparx also aims to make fashion shoes for the individuals of all ages.  This combines for the rest of the market and will be around 15%. The estimated market value is around $90 per head.

Basis of segmentation:

Demographic: age

Psychographic: Comfort and choice

  1. Seasonal boots for winter for all the individuals: As the boots which are worn in winter is specifically popular in Canada, Sparx also aims to make the boots as a seasonal production.

Basis of segmentation:

Psychographic: Comfort and choice 

The product can be rightfully defined as the offering which is made by the firm in order to satisfy the need of a customer at large. In the case of Sparx, the offering which is made by the firm is a tangible product which meets the essential needs of the target market. At all stages of the product life cycle, the marketers are faced by different challenges and it is important for the firm to ensure that a firm is successfully able to strategize for each stage of the product. It is important to keep in mind that when  company designs a specific product for the target market, it will be required to ensure that it’s able to essentially highlight the benefits of the particular product and along with this able to differentiate the product from its competitors. This ensures that the company will have a higher standing. Moreover, it is important for Sparx to understand the buyer needs and the comfort level which they aim to receive from the shoe in order to ensure that the sales which they make are considerably high.

Pricing Strategies

The different products being offered by the company are given as follows:

  1. Casual sandals: In this offering, Sparx will be offering casual wear to women between the ages of 5 to 50. These sandals will be specially designed by the designers and will ensure that it follows the latest trends along with quality and comfort.
  2. Kid’s shoes: The firm will also be offering kids shoes for children below the age of 5 whereby the comfort and growth of the children will be of the top most priority.
  3. Formal office wear: Sparx will also offer formal leather shoes for office as well as other related firms which shall ensure that the customer wearing the shoe experiences class along with a suitable price.
  4. Fashion shoes: The firm also wants to offer high range fashion shoes for both the genders which will be designed carefully after taking in consideration the latest trends available.
  5. Comfortable shoes for elderlies: In order to uplift the brand image of the firm, Sparx wants to make an offering to all the age groups present. Hence, it offers a shoe for elderlies as well.
  6. Lastly, Sparx also makes seasonal boots for the Vancouver market as it was observed that boots are the commonly purchased footwear.
  7. The point of differentiation for the firm in its offerings is that it offers good quality products to the customers which are fashionable yet comfortable and are affordable in terms of price as well.

The pricing aspect covers the actual amount which an end user seeks to pay for a particular product. The manner in which a product is priced has a very strong impact on the sales made by the product. Hence, it is important for Sparx to price its products accordingly in a manner such that it is able to sell adequately in the external business market. The price of a product is often linked to the perceived value of it in the market and with respect to this, the product needs to be priced as per the perceived value in order to boost up the respective sales. However, the pricing of a particular product is not an easy task and the company functioning in the business environment is also required to be very considerate about the distribution plans, promotional strategies, value chain and related mark-up costs along with competitor analysis in order to ensure that the price is as per the expectation of the consumers and also according to the profitability of the firm. Sparx is a relatively new company in the domain of the shoe business and for this reason, they are required to be very careful with respect to the operations of the firm. Hence, for this reason, it is recommended that Sparx makes use of a combination of competitive pricing and the penetrating pricing strategy. In the competitive pricing strategy, the firm prices its products as per the prices of the competitors as present in the market. This way, the competition laws can also be abided by along with ensuring that the firm is successfully able to match up to the standards of the competition with which they aim to compete with.

The penetration pricing strategy is a strategy whereby the price of the product in the market is initially kept at a low and is increased later on when the product becomes considerably popular. Sparx aims to price its product accordingly based on competitive pricing as well as penetration pricing strategy.

The pricing objectives are as follows:

  • To ensure that maximum revenue can be incurred.
  • To ensure that the customers are attracted to the firm and its offerings.
  • To make a position for the company in the shoe market.

The pricing units as per the product line have been given as follows:

  • Casual sandals: $100
  • Kids shoes: $50
  • Formal office wear: 120$
  • Fashion shoes: 100$
  • Comfortable shoes for elderlies: 80$
  • Seasonal boots $180

The given pricing has been set out in order to ensure that the prices are perceived valuable as per the products and in addition to this, the prices are a little low as compared to the competitors so that maximum sales can be achieved.

Promotional Tactics

The promotion can be stated the marketing communication strategies as well as the techniques which are generally used by the company in order to promote the goods of the firm at large. These include a wide range of options like sales promotion, special offers, advertising, public relations and other new methods like the use of the medium of social media. When the company plans to make use of a specific promotional strategy it needs to ensure that it makes the use of the correct kind of medium for the right product. Moreover, it becomes comparatively relevant for the company to differentiate between marketing and promotion at large. The promotion can be stated to be the communication mode for the marketing function.

The key message which Sparx wants to give out to the different customers is that Sparx offers the latest products at the best price and at the best discount offers. Moreover, the products of the company are of good quality which last long and provide comfort to the different customers.

The promotion mix can be described as the mix of the promotion techniques which are used by an organization to approach the different customers at large and to ensure that they are successfully able to reach out to the different consumers using the different mediums and to ensure that the firm is successfully able to attain success. The promotion mix as used by the Sparx is as follows:

  • Advertising: The advertising can be stated to be a useful technique of reaching out to the consumers. By using the medium of advertising a company can easily reach out to its customers by the medium of newspapers, televisions as well as the radio and other banner advertisement techniques with the help of which a majority of the target market segment in Vancouver will be covered by Sparx.
  • Public relations: The Public relations can also be described as a useful medium with the help of which Sparx can make use of a brand ambassador who should be a known face and will thereby assist the firm in gaining an overnight recognition.
  • Sales promotion: The sales promotion techniques whereby the consumers are given various offers like loyalty points and other discounts is also often considered to be a useful measure with the help of which a firm can attain considerable success.
  • Direct Marketing: The direct marketing technique can also be used by the brand with the help of which the organization can successfully reach out to the different customers directly by appealing to them on a personal note and promoting them with the products of their choice at large.
  • Social media and online advertising: The social media channels like Facebook, Twitter and even instagram can be used by the brand in order to ensure that it is able to appeal to the tech savvy users and thereby let the company ensure that it is successfully able to carry out the different selling process.

 Refer to Appendix for the Promotional budget

The plans will be launched simultaneously whereby all of them will be tried for a period of 1 year.

The distribution strategy or the place strategy of the company can be stated to the manner in which the product of the company will be provided to the customers. The distribution forms a key component of the placement strategy of any organization and any firm in the business environment needs to make considerable decisions based on this use of the channel. The use of the right kind of a placement strategy will go a long way in ensuring that the firm is able to make use of a suitable platform to appeal to the different consumers at large.  Sparx is a company which is new in the Vancouver shoe market and for this reason, at present it will only make use of one store to reach out to the customers. The store will be located in the centre of the city and with the help of this suitable location, the Sparx as a company will be able to ensure that it is able to engage with the maximum audience. In the future, Sparx aims to open its different stores at different locations and even enter into the online domain. At present a single location has been selected in order to ensure considerable success for the firm at large.

Distribution Strategies

The implementation tends to form a key aspect of the business marketing plan and a successful implementation plan tends to play a key role in ensuring the overall success of the business. Even if the different aspects of the business are well planned and all the considerations have been made successfully, without correct implementation the plan will not be successful. The implementation action plan of the Marketing Plan of Sparx has been given as follows:

Sr. No

Actions to be undertaken

Person Responsible

Time frame

Key outcomes

1.

Research and development of the particular industry

Research and development team of the company

2 months

To ensure that the firm is able to take out adequate information about the shoe market.

2

Research into the designated general business market

The owner of the business and the marketing manager.

1 month

To ensure that the business is successfully able to take into consideration the general business factors and implement the business idea successfully.

3

Formation of the different objectives of the firm

The different departments and the

Owner

Senior management

Marketing manager

Finance manager

1 month

To ensure that the goals of the business are successfully identified which will then allow the managers of the business to make considerable use of the resources in order to form a plan suitable for the firm

4

Deciding upon the designated target market

Marketing manager

2 months

This will help the business to choose the right kind of customers for itself which will assist the business in ensuring considerable success.

5

Deciding upon the marketing mix

Marketing manager

Product design team

Finance manager

4 months

This shall assist the organizational managers in deciding upon the components of the marketing mix which will then able to assure that the organization is able to make the right offering to the customers at the right price using the fight mediums and the right distribution strategy.

6

Implementation and control

The designated teams

Marketing manager

Quality control team

2 months

This shall ensure that the designated marketing plan which is formed is correctly implemented and that the different aspects of it are controlled adequately.

After the implementation of the Marketing Plan it becomes considerably important for the different managers to ensure that they continuously monitor the progress that the firm makes and thereby notes down the different key measurement aspects against which the actual performance of the firm will be measured.The different controls are as follows:

  • Net Sales: The net sales can be taken to be a considerably good measure which will help in understanding the response to the different marketing activities of the firm at large.
  • Customer Enquires: This measure also goes a long way in assisting the business to understand the response to the different queries which they have made at large.
  • Store footfall: The store footfall will also act as a good measure of understanding of whether the firm has done a good job in marketing its different activities or not.
  • Leads: The leads received to the personal sellers and the responses of the customers can also serve as a good measure of understanding whether the firm has been successful in its activities or not.                                         

The Sparx shoe company not only aims to ensure that it is able to achieve considerable success through earning a higher revenue base but it also aims to see to it that the business is successfully able to engage in certain social   activities which will be beneficial for the overall firm at large. Hence, for this reason, Sparx aims to engage in volunteering for the differently enabled people whereby the company aims to empower them by ensuring that the different members of the community are successfully able to ensure a place for themselves in the world and that they become self-reliant. In addition to this, the company also aims to come up with a plan for its employees whereby it aims to provide a comfortable environment for them.

Conclusion

Therefore, from the given analysis it can be rightfully stated that the marketing plan of any organization tends to form a key aspect of the starting of the business and thereby it becomes essential to ensure that the company is successfully able to implement its plan with the help of which it will be able to establish itself in the business domain. The given report laid down the marketing plan of Sparx which is a shoe company planning to establish in the operations in Vancouver. The marketing strategy along with the implementation plan has been stated.

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