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Proposalforreshapingtheshampoobrand“Venus”
Contents
ExecutiveSummary
1
Introduction
1
FindingsandAnalysis
2
1.Strengths
2
2.Weaknesses
2
3.Opportunities
2
4.Threats
3
5.ProductStrategy
3
6.Advertisingplan
3
7.SalesStrategy
4
8.CostBreakdown(UnitofMeasurement:RMByuan)
4
9.Benefits
5
10.RisksandManagementPlans
5
Conclusion
6
ExecutiveSummary
Duetothereputationoftheproducthasdeclined,themarketshareofbrand“Venus”iscontinuingtodecline.Asaresult,"Venus"Shampoopanyisfacingaseriouscrisis.Thepanyhasachoiceoftwomarketingprograms——pricecutsorreshapethebrand.AftertheanalysisofthemarketsituationandtheSWOTanalysisof“Venus”Shampoopany,wedecidetoadoptthemarketingplanofreshapingthebrand.
“Venus”Shampoopanywillimplementtheplanthroughaseriesofadsandproductupdatestrategysoastoreshapethebrand.
Themarketingplanwillcost2,000,000yuan.Throughtheimplementationofthisplan,"Venus"willonceagainbeeoneofthemostwell-knownshampoobrands.Besides,thesalesvolumeof“Venus”shampooisexpectedtoriseby25%,andthepany'sprofitwillriseby15%.
Introduction
Thebrandof"Venus"isbornin1990,whichaimedatthosefemaleconsumersagedbetween15and30-year-old.Itgavepeopletheimpressionoffashion,romantic.Shortlyafterthepanywasfounded,itexperiencedarapidexpansionofmarketshare.Asaresult,"Venus”,whichwasastrongregionalbrandofGuangdongProvinceatfirst,becameintooneofthenationwidemajorbrands.Ithadamarketshareof4%soon.Andmorethanadecade,"Venus"keptonmaintainedthe4%Marketshare.Overtheyears,thebasisproductof"Venus"andthepackaginghavemadeseveralchanges,buttheappearanceoftheproducthaveneverbeenchanged.Furthermore,theadvertisementof“Venus”——"Venus:aromanticproductesfromEurope"——alsohasneverbeenchanged.In2006,themarketshareof“Venus"startedtodeclineslowly.Until2008,twoyearsafterthedeclinehappened,the“Venus”Shampoopanybegantopayattentiontothisproblemseriously.
Itisclearthat"Venus"Shampoopanyisfacingtheproblemofbrandaging.Duetointernalandexternalreasons,thebrandmeetsaseriesofprobleminmarketpetitionsuchasthedeclineinreputation,sales,aswellasmarketshare,iscalledbrandaging.Brandagingcausesenormousharmtobrandowner,makingthebrandownerslostpartofitsregularcustomers.Andthistrend,onceformed,itwouldbedifficulttoreverse,asifitentersasituationas"grave”,saidDavidAaker,whichischaracterizedas:everyoneknowsthisbrand,namelyitisafamousbrand,butpeopledonotrememberitwhenmakepurchasedecision.
Thebestsolutiontosuchaproblemistoreshapethebrand.Throughaseriesofadvertisingandproductupdate,wecanreshapethe"Venus"asahigh-end,fashion,tastefulshampoobrand.
FindingsandAnalysis
Strengths
Wethinkthatthestrengthsarecrucialinreshapingthebrand.Thereforeweshouldtakeadvantagesoftheexistingstrengthsthoroughlysoastosavethebrandandrescuethe“Venus”Shampoopany.Thesestrengthscanbeillustratedinsuchfactorsas:
Theproductsofthisbrandaresoldalloverthecountry,anditisstillanationwidebrandwhichhasamarketshareofnearly4%.
ThebrandhasamysteriousandromanticEuropeanstyle,whichgivespeopletheimpressionoffashion,romanticandtasteful.
Thebrandhasalonghistory;asaresult,ithasagreatnumberofloyalcustomers.
Thepanyhasstablechannelsofadvertisingandanexperiencedadvertisingteam.
ThepanyhasanexperiencedR&Dteam.Furthermore,itisdevelopingakindofnewshampoonow.
2.Weaknesses
However,wethinkthattheweaknessesarevitaltooinreshapingthebrand.Thereforeweshouldmakeaclearunderstandingoftheexistingweaknessessoastomakeupforthesedeficiencies.Theseweaknessescanbeillustratedinsuchfactorsas:
Thekindsofproductswhichthe“Venus”Shampoopanyprovideforconsumersareveryfew.
Thebrandimageof“Venus”isoutdated,anditsattractivenesshasgonedown.
Duetothepoorinternalmunicationofthe“Venus”Shampoopany,itisexceedinglydifficulttoreachconsensusbetweendifferentdepartments.
Thepanyhasonlyonesalesmodel,whichcannotsuittothechangesinconsumerbuyingpatterns.
Thepany'sstaffsarelackofawarenessofthetrendofconsumptionandarenotsensitivetochangesinthemarket.
Opportunities
Opportunitiesareexternalfactorswhicharebeneficialtotheimplementofourplan.Itisfeltthattherearegoodopportunitiesforustoreshapethe“Venus”shampoobrand.Thesecanbeillustratedinthefollowingfactors:
Throughouttheshampoomarket,customerbuyingpatternsareverydifferent,andwecanmakeuseofthischaoticsituationtoreshapethebrand.
Allotherproductsonthemarketarelackofwinningstrategy,namelythereisnotanybrandwhichhasformedthemonopolypositiononthemarketyet.
Duetothedeclineinbrandloyaltyofcustomers,onesinglebrandcannotoccupythewholemarket.
Threats
Threatsareexternalfactorswhichareharmfultotheimplementofourplan.Itisfeltthattherearesomethreatsforustoreshapethe“Venus”shampoobrand.Thesecanbeillustratedinthefollowingfactors:
Theretailersdonotsupportthe"Venus"brandasbefore.paredwiththepast,manymerchantshaveloweredthe"Venus”shampoo’sshareofshelfspace.
Thebarriersofmarketentrancehavereduced.Asaresult,manynewproductshaveemerged,andtheyalltryingtograbmarketshare.
5.ProductStrategy
Firstofall,letusanalyzeandpositiontheproductsof“Venus”ShampoopanyaccordingtotheBCGmatrix.Itisclearthatthe"Venus"Shampoopany’sexistingproductbelongstothecash-cowbusiness.Itsgrowthprospectislimited,buthighmarketsharemakesitthepany’smainsourceofcashineinshortterm.Therefore,suchabusinessshouldnotbegivenup.Thenewproductthatthe“Venus”Shampoopanyisdevelopingmaybebelongstothestarbusiness.However,throughmarketresearch,webeeawareofthatthegreenproductisthesymbolofhigh-qualityintoday'smarket.Asaresult,webelievethat,basedoncurrentconsumptiontrends,the“Venus”Shampoopanyshoulddevelopakindofgreenproductimmediately,anddevelopitintoakindofstarbusiness.Basedontheaboveanalysis,wehaveformulatedthefollowingproductstrategy.
Definetheexistingproductofthe“Venus"Shampoopanyas"ClassicSerial",soastopreventthelossofloyalcustomers.
BringthenewkindofproductwhichtheR&Dteamisdevelopingnowintothemarketassoonaspossible,anddefineitas“FashionSerial”.
Immediatelystarttodevelopakindofgreenproduct,anddefineitas"GreenSerial".
6.Advertisingplan
Intheprocessofreshapingthebrand,advertisingplaysanimportantrole.Webelievethatthe"Venus"Shampoopanyneedstoimplementanationwideadvertisingcampaignsothatmoreandmoreconsumerswillbeawareofsuchashampoobrandanditsproducts.Basedontheaboveanalysis,wehaveformulatedthefollowingadvertisingplan.
Choosesomeofthemassmediaasadvertisingmedia,e.g.televisionadvertising,themagazineoflife(especiallypopularfemalemagazine),FashionTVprograms,outdoorbillboards,busbodyadvertisementandsoon.
Conveneanumberofnewsmediasoastoholdapressconferenceofnewproducts.
7.SalesStrategy
Throughmarketresearch,weknowthat,themarketingchannelsof"Venus"shampoohavealwaysbeenthesupermarketsandretailstores.However,intoday'sshampoomarket,consumerbuyingpatternsareextremelydifferent.Asaresult,thesinglesalesmodelofthe“Venus”Shampoopanyobviouslyisunabletosuitforthechangesofconsumers’buyingpattern.Moreover,accordingtothefeedbackofsalesforce,weareawareofthattheretailersdonotsupportthe"Venus"brandaswellasbefore.paredwiththepast,manymerchantshaveloweredthe"Venus”shampoo’sshareofshelfspace.Tosolvetheseproblems,wehaveformulatedthefollowingsalesstrategy.
Providemoreprofitsforretailerstoimprovetherelationships.Sothatwecanwintheirsupporttothe“Venus”brandanditsproducts.
Exploreanddevelopmoreandmoremarketingchannels,suchassetupsomespecialcountersinhigh-endsalons,high-endshoppingcentersanddrugstores.Moreover,wecanbuildanonlinetradingplatformfor“Venus”.
Providecustomerswithhighqualityafter-salesservice.High-qualityafter-salesserviceisasymbolofhigh-endbrands,aswellasthebestpromotion.Weshouldmakeuseofsomemeanstoimproveourafter-salesservice.Tonameafew,weshouldopena24-hoursservicehotlineforcustomersandmakesurethatthereisactuallysomeonewhowillanswertheconsumers’plaintsorquestions.
Implementthecustomerrelationshipmanagement(CRM).Customerrelationshipmanagement(CRM)isaboutunderstandingthenatureoftheexchangebetweencustomerandsupplierandmanagingitappropriately.Theexchangecontainsmonetaryconsiderationbetweensupplierandcustomer,butalsomunication.Thechallengetoallsupplierorganizationsistooptimizemunicationbetweenpartiestoensureprofitablelong-termrelationships.
Useavarietyofpromotionalmeans
8.CostBreakdown(UnitofMeasurement:RMByuan)
Accordingtotheestimation,theplanwillcost2,000,000yuanwhichincludeR&Dcosts,advertisingcosts,andoperatingexpensesandsoon.Expensesforspecificitemsarelistedasfollows:
R&Dcosts:TheR&Dofnewproductswillcost400,000yuan.
Advertisingcosts:Thecostofadvertisingincludingtelevisionadvertisingexpenses,magazineadvertisingexpenses,outdoorbillboardsexpensesandbusbodyadvertisingexpenseswouldreach1,200,000yuan.
Televisionadvertisingexpenses600,000
Magazineadvertisingexpenses400,000
Outdoorbillboardsexpenses100,000
Busbodyadvertisingexpenses100,000
Operatingexpenses:Thecostofcarryingouttheplanwouldbe100,000yuanwhichincludemanagementcosts,financecostsandentertainmentcosts.
Promotioncosts:Thecostofpromotionwouldbe300,000yuan.
9.Benefits
Suchabrand-reshapingplanwilleffectivelymakeuseofthe“Venus”Shampoopany'sexistingresources,whichincludethehigh-endbrandimageof“Venus”,theexistingproduct,thenewproductthattheR&Dteamisdevelopingnow,theexistingmarketingchannels,andsoon.Asaresult,theimplementationofthisplanwillnotbringthepanytoomuchfinancialpressure.Furthermore,theplantakesfullaccountofthepany'sproblemsandgivesremendationsforimprovements.
Webelievethatthroughtheimplementationoftheplan,the"Venus"brandcanbesaved,anditwillonceagainbeeoneofthemostwell-knownshampoobrands.Besides,thesalesof“Venus”shampooareexpectedtoriseby25%,andthepany'sprofitwillriseby15%.
10.RisksandManagementPlans
However,weshouldalsotakeaccountoftheriskswemightconfrontwhenweputtheplanintopractice.Forexample,someofthepany'semployeesmayresisttheimplementationoftheplan;thestaffswhowilloperatethedetailsmaynotunderstandthepracticalsituationsothattheplanwillbecarriedoutindifficulties;duetothepoorinternalmunicationofthepany,itmaybeexceedinglydifficulttoreachconsensusbetwee
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