Use the product or service you selected for your Marketing Plan: Phase I Paper. (Reparing/Replacing) Write a 300-word paper in which you address the following: Analyze current competitors and define the competitive landscape for your product or service.,Here is phase 1 paper,Marketing Plan: Phase I As companies grow, they usually expand their scope of business by starting new lines of products and services. After a company decides it is time to expand, a marketing plan is originated. ?A marketing plan is a written statement of a marketing strategy and the time-related details for carrying out the strategy? (Perreault, Cannon, McCarthy, 2011, p. 40). There are various steps to the marketing plan starting with the assessment of the current status of the business and ending with evaluation of the success after the development is in place. Organizational Overview The Home Depot was formed by two businessmen Arthur Blank and Bernie Marcus in Atlanta, Georgia in 1978. Teaming with a banker Ken Langone and a merchandising expert Pat Farrah, their group visualized a one stop shop for the do it yourselfer. The business dream took shape in the form of two stores. The stores were estimated at 60,000 square feet each; they were enormous warehouses that intimidated the competition and boosted a 25,000 SKU inventory crushing the average hardware stores in 1979. They started the store and inventory was still coming in and what empty shelves they were they hid with empty boxes giving the store that full look. The fastest growing retailer in the history of the United States, the company went public and began its takeover in the New York Stock exchange in 1984. In the years to come it began expanding in each state furiously increasing the company?s hold in the housing market for the self-doer. By 1989 the company has opened its 100th store and celebrated its run thus far. The company looked elsewhere for more squared footage in Canada with the acquiring of Aikenhead?s home improvement centers in 1994 taking advantage of the location and the already established transportation network. The next step was going into Mexico into 2001 creating a foothold in the market there. Today stands a museum of the company, which chronicles the history of The Home Depot and explains the business ethics that set the Giant retailer apart from other retailers. The museum is named,? The Legend?; it opened in 1999 at the Atlanta Store Support Center giving the base of the company its deep southern roots. New Product Description Home Depot is a reliable and trustworthy company that offers a variety of personalized services. Home Depot realizes that their customers might not know who to turn to when there is a repair or maintenance problem. Wisely, Home Depot has decided to expand their customer-friendly market to include cost-efficient trade (specialty) services for its customers. Home Depot has thrived by their customer?s loyalty and wants to use its stellar reputation and provide its customers an alternative to the cold-call repairman. Home Depot will expand its services to include ?Home Depot Trades.? Home Depot Trades will offer and include the following: electrical, plumbing, heating, cooling, siding, door, window, and appliance repair. Home Depot Trades will only use licensed and insured contractors to evaluate a customer?s problem. Home Trades will ensure its representatives will be on time, courteous, respectful, and knowledgeable to the needs of their customers. The contractor will first inspect the maintenance issue(s). Second, the contractor will give an estimate on the cost and length of time the maintenance issue(s) will be fixed. Third, the contractor will repair or replace the maintenance issue(s) immediately. If an immediate resolve is not available, Home Depot Trades will offer alternative solutions so as to resolve the problem in a timely fashion. If there is an emergency, the customer will not have to worry as Home Depot will have a Hotline number available 24/7. The operator will analyze the problem and schedule an experienced contractor out as soon as practicably possible. If there is not an urgent emergency, the operator will analyze the problem and thereafter schedule a convenient date and time to provide a contractor who is experienced in the area of concern. Home Depot Trades will guarantee all work, parts and appliances necessary to the customers? satisfaction. Home Depot Trades will be a subsidiary of Home Depot and therefore its reputation will remain stellar. SWOTT Analysis SWOTT Analysis is a part of strategic planning by which the strengths, weaknesses, opportunities, threats, and trends of a business or service are assessed. There are many things that should be taken into consideration when expanding an already lucrative business. Offering repair services in addition to selling the parts to make the repairs can give Home Depot an edge over competitors, such as Lowes and Ace Hardware. There are, however, risks associated with offering these types of services. One risk is losing business to contractors or laborers who may offer the same services at significantly lower prices. To operate within the law, Home Depot will need to employ licensed, qualified repairmen, which can cause the price to be higher than a regular contractor or labor worker. The company will be responsible for the work of the employees; they must also obtain liability insurance for the employees. They will also need to ensure that they are following regulations by using only the products approved by law. This will apply to all the new ventures that Home Depot is interested in implementing; electrical, plumbing, heating, cooling, siding, doors, windows, and appliance repair. The opportunities, however, for this addition to Home Depot, are endless. Although there can be an up and down trend in business, there will always be repairs that need to be made so just as any other business, there will be a busy season and a not-so-busy season, depending on which type of repair. For example, there is usually a higher need for plumbing repair in the winter because of pipes freezing and bursting in freezing temperatures. Moreover, there is a higher demand for air conditioner repairs in the summer because of overuse or extended use of the cooling systems. The SWOTT analysis shows that the benefits outweigh the risks and threats. Marketing Research Home depot is planning to go in for a new service to set up repairs for its products delivered. In order to find out if this repairing service will be receptive or not, a marketing plan will have to be prepared. The marketing plan for its new services can be viewed as a production concept as consumers go for services that are widely available at low costs, causing a company to focus on efficient production processes and strong distribution channels. A second product concept would be where customers go for a product that offers quality, innovative features, and accepted performance. A third product concept would focus on aggressive selling and promotions. A fourth marketing concept could be an organization focusing on satisfying customers? needs and in turn their organizational objectives and departments are viewed as one of the management department for creating and managing customers to benefit them. Marketing concepts are defined as customer-oriented approaches that are implemented and integrated throughout the company to serve customers better than competitors, achieve competitive advantage, and achieve specific goals. Currently, the focus of marketing management has shifted from company to customers, transactions to building relationships, manufacturing process to creation of values for company and the customers, etc. Traditional marketing has changed to teamwork, multi-functional teams, aligning company and its external environment, knowledge, skills and expertise, customer-centered activity, etc. The marketing plan for Home Depot is prepared and operated at tactical and strategic level. The strategic marketing plan defines target markets and products or services that will be offered by the company on the basis of value perceived by the customers. All these activities are carried out on the basis of an analysis conducted to find out best available market opportunities. On the other hand, a tactical plan describes marketing tactics i.e. product features, merchandising, promotion, pricing, distribution channels, etc. These planns are implemented at various levels of organization, monitoring results, and taking corrective actions on any deviation from the predefined objectives. The market research approach that Home Depot should use for developing the new repair services starts with the customer. As Home Depot looks to expand it horizons, it is expanding its services to its customers. Home Depot can begin by passing out surveys that collect information on different types of repairs customers need. Another market strategy could be they use the home improvement classes on weekends to draw more people to the store to see what the customer is interested in. The third market research item they may use is the monthly sales report. Home Depot can use this to change the sales routine to bring in more money on slower days of the month. From this information Home Depot begins to tailor a repair service to help customers restore their homes. Some of the tactics that Home Depot may consider is offering a payment plan on services over a certain dollar amount. Another would be is to give a discount on not in season items to help sell material that is a hard mover. A third would be to package items together and throw in some things that they may not need to sell others. In conclusion, the first phase of the marketing plan is completed. The current organizational overview has been assessed. The new service idea has been described. A SWOTT analysis was completed to weigh all potential factors relating to the new service idea. Marketing research was conducted to measure the current need of such a service in the target communities. However, the marketing plan is still yet to be finished. There are several more steps in the process to ensure success of the new addition to Home Depot?s scope of business.
Paper#12235 | Written in 18-Jul-2015Price : $25