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1、Proposal forreshaping theshampoobrand“Venus”ContentsExecutive SummaryDue to the reputation of the product has declined,the market share of brand“ Venus ” is continuing to decline.As a result, "Venus" Shampoo Company is facing a serious crisis. The company has a choice of two marketing prog

2、rams price cuts or reshape the brand. After the analysis of the market situation and the SWOT analysis of“ Venus ”Shampoo Company, we decide to adopt the marketing plan of reshaping the brand.“ Venus ”Shampoo Company will implement the plan through a series of ads and product update strategy so as t

3、o reshape the brand.The marketing plan will cost 2,000,000 yuan. Through the implementation of this plan, "Venus" will once again become one of the most well-known shampoo brands.Besides, the sales volumeof “ Venus ” shampooexpectedis to rise by 25%, and the company's profit will rise

4、by 15%.IntroductionThe brand of "Venus" is born in 1990, which aimed at those female consumers agedbetween 15 and 30-year-old. It gave people the impression of fashion, romantic. Shortlyafter the company was founded, it experienced a rapid expansion of market share. As aresult, "Venus

5、” , which was a strong regional brand of Guangdong Province at first,became into one of the nationwide major brands. It had a market share of 4% soon. Andmore than a decade, "Venus" kept on maintained the 4% Market share. Over the years,the basis product of "Venus" and the packag

6、inghave made several changes,but theappearance of the product have never been changed. Furthermore, the advertisement of“ Venus ”"Venus: a romantic product comes from Europe " also has never been changed.In 2006, the market share of “Venus" started to decline slowly. Until2008, two ye

7、ars after the decline happened,the“ VenusShampoo” Company began topay attention to this problem seriously.It is clear that "Venus" Shampoo Company is facing the problem of brand aging.Due to internal and external reasons, the brand meets a series of problem in marketcompetition such as the

8、 decline in reputation, sales,as well as market share, is calledbrand aging. Brand aging causesenormous harm to brand owner, making the brandowners lost part of its regular customers. And this trend, once formed, it would bedifficult to reverse, as if it enters a situation as "grave ”,said Davi

9、d Aaker, which ischaracterized as: everyone knows this brand, namely it is a famous brand, but people donot remember it when make purchase decision.The best solution to such a problem is to reshapethe brand. Through a series ofadvertising and product update, we can reshapethe "Venus" as a

10、high-end, fashion,tasteful shampoo brand.Findings and Analysis1. StrengthsWe think that the strengths are crucial in reshaping the brand. Therefore we shouldtake advantages of the existing strengths thoroughly so as to save the brand and rescuethe “ Venus” Shampoo Company. These strengths can be ill

11、ustrated in such factors as:? The products of this brand are sold all over the country, and it is still a nationwide brand which has a market share of nearly 4%.? The brand has a mysterious and romantic European style, which gives people the impression of fashion, romantic and tasteful.? The brand h

12、as a long history; as a result, it has a great number of loyal customers.? The company has stable channels of advertising andexperiencedan advertising team.? The company has an experienced R & D team. Furthermore, it is developing a kind of new shampoo now.2. WeaknessesHowever, we think that the

13、 weaknessesare vital too in reshaping the brand.Therefore we should make a clear understanding of the existing weaknesseso as tomake up for these deficiencies.These weaknesses can be illustrated in such factors as:? The kinds of products which the “Venus” Shampoo Company provide for consumers are ve

14、ry few.? The brand image of “Venus” is outdated, and its attractivenesshas gone down.?Due to the poor internal communication of the “ Venus”ShampooCompany , it is exceedinglydifficult to reach consensusbetween differentdepartments.? The company has only one sales model, which can not suit to the cha

15、nges in consumer buying patterns.? The company's staffs are lack of awareness of the trend of consumption and are not sensitive to changes in the market.3. OpportunitiesOpportunities are external factors which are beneficial to the implement of our plan.It is felt that there are good opportuniti

16、es for us to reshapethe “Venus” shampoobrand. These can be illustrated in the following factors:? Throughout the shampoo market, customer buying patterns are very different, and we can make use of this chaotic situation to reshape the brand.? All other products on the market are lack of winning stra

17、tegy, namely there is not any brand which has formed the monopoly position on the market yet.? Due to the decline in brand loyalty of customers, one single brand can not occupy the whole market.4. ThreatsThreats are external factors which are harmful to the implement of our plan. It isfelt that ther

18、e are some threats for us to reshape the“Venus” shampoo brand. Thesecan be illustrated in the following factors:? The retailers do not support the "Venus" brand as before. Compared with the past, many merchants have lowered the "Venus” shampoo sshare of shelf space.? The barriers of m

19、arket entrance have reduced. As a result, many new products have emerged, and they all trying to grab market share.5. Product StrategyFirst of all, let us analyze and position the products of “ Venus” ShampooCompany according to the BCG matrix. Itis clear that the "Venus" ShampooCompany s

20、existingproduct belongs to the cash-cow business. Its growth prospect islimited, but high market share makes it the companys main source of cash income inshort term. Therefore, such a business should not be given up. The new product that the“ Venus” Shampoo Company is developing maybe belongs to the

21、 star business. However, through market research, we become aware of that the green product is the symbol of high-quality in today's market. As a result, we believe that, based on current consumption trends, the“Venus” Shampoo Company should develop a kind of green product immediately, and devel

22、op it into a kind of star business.Based on the above analysis, we have formulated the following product strategy.? Define the existing product of the “Venus" Shampoo Company as "Classic Serial", so as to prevent the loss of loyal customers.? Bring the new kind of product which the R

23、& D team is developing now intothe market as soon as possible, and define it“asFashion Serial”.? Immediately start to develop a kind of green product, and define it as "Green Serial".6. Advertising planIn the process of reshaping the brand, advertising plays an important role. Webeliev

24、e that the "Venus" Shampoo Company needs to implement a nationwideadvertising campaign so that more and more consumers will be aware of such a shampoobrand and its products.Based on the above analysis, we have formulated the followingadvertising plan.? Choose some of the mass media as adve

25、rtising media, e.g. television advertising, the magazine of life (especially popular female magazine), Fashion TV programs, outdoor billboards, bus body advertisement and so on.? Convene a number of news media so as to hold a press conferenceof new products.7. Sales StrategyThrough market research,

26、we know that, the marketing channels of "Venus"shampoo have always been the supermarkets and retail stores. However, in today'sshampoo market, consumer buying patterns are extremely different. As a result, thesingle sales model of the“ Venus” Shampoo Company obviously is unable to suit

27、 forthe changesof consumers buying pattern. Moreover, according to the feedback ofsales force, we are aware of that the retailers do not support the "Venus" brand as well asbefore. Compared withthe past, many merchants have lowered the "Venus ”shampoo sshare of shelf space. To solve t

28、hese problems, we have formulated thefollowing sales strategy.? Provide more profits for retailers to improve the relationships. So that we can win their support to the“Venus” brand and its products.? Explore and develop more and more marketing channels, such as set up some special counters in high-

29、end salons, high-end shopping centers and drug stores. Moreover, we can build an online trading platform for“ Venus”.? Provide customers with high quality after-sales service. High-quality after-sales service is a symbol of high-end brands, as well as the best promotion. We should make use of some m

30、eans to improve our after-sales service. To name a few, we should open a 24-hours service hotline for customers and make sure that there is actually someone who will answer the consumerscomplaints or questions.? Implement the customer relationship management (CRM). Customer relationship management(C

31、RM) is about understanding the nature of theexchange between customer and supplier and managingappropriatelyit. The exchange contains monetary consideration between supplier and customer, but also communication. The challenge to all supplier organizations is to optimize communication between parties

32、 to ensure profitable long-term relationships.? Use a variety of promotional means8. Cost Breakdown (Unit of Measurement: RMB yuan)According to the estimation, the plan will cost 2,000,000 yuan which include R & Dcosts, advertising costs, and operating expenses and so on. Expenses for specific i

33、temsare listed as follows:R&D costs: The R & D of new products will cost 400,000 yuan.Advertising costs:The cost of advertising including television advertising expenses,magazineadvertising expenses,outdoor billboards expensesand bus body advertisingexpenses would reach 1,200,000 yuan.Televi

34、sion advertising expenses600,000Magazine advertising expenses400,000Outdoor billboards expenses100,000Bus body advertising expenses100,000Operating expenses: The cost of carrying out the plan would be 100,000 yuan whichinclude management costs,finance costs and entertainment costs.Promotion costs:Th

35、e cost of promotion would be 300,000 yuan.9. BenefitsSuch a brandreshaping- plan will effectively make use of the“ Venus ”ShCompany's existing resources, which includethe high-end brand image of“ Venus ” ,the existing product, the new product that the R&D team is developing now, the existing

36、marketing channels, and so on. As a result, the implementation of this plan will not bringthe company too much financial pressure. Furthermore, plan takes full account of thecompany's problems and gives recommendations for improvements.We believe that through the implementation of the plan, the

37、"Venus" brand can besaved, and it will once again become one of the most well-known shampoo brands.Besides, the sales of “ Venus ” shampoo are expected to rise by 25%, and thecompany's profit will rise by 15%.10. Risks and Management PlansHowever, we should also take account of the ris

38、ks we might confront when we putthe plan into practice. For example,some of the company's employeesmay resist theimplementation of the plan; the staffs who will operate the details may not understandthe practical situation so that the plan will be carried out in difficulties; due to the poorinternal communication of the company, it may be exceedingly difficultto reachconsensus between different departments.Although it is impossible to eradicate all the risk at once, it is very necessary to keepth

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