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Marketing Plan: Handywares Plc.

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Introduction

Marketing Plan: Handywares Plc. Handywares is a British based homeware company selling door to door through a network of agents. Business is going well in their UK domestic market and they have decided to expand into Europe. To do this we have drawn up this marketing plan. The aim of this plan is to attempt to 'predict the future through studying the past'* This plan will attempt to cover all aspects of the process of entering a new market though the following areas: 1. Understand your industry, not just your product 2. Identify your target market. 3. Identify your competition 4. Establish your pricing, distribution and product positioning 5. Identify the one, single, correct marketing concept for you Mission (or vision) statement: Initially it is important to state the company's mission statement as this will govern and guide our decisions through the marketing plan. The Handywares Mission statement is as follows:* Situation analysis: Handywares is a British based firm selling homeware door to door though a network of agents with a current turnover of 50m. The agents are responsible for the door-to-door drop-off of weekly catalogues that are left for the customer to peruse at their leisure. Orders can be made though order forms that are placed inside the catalogues. The agents then collect the catalogues at the end of the week and any orders that have been placed are taken to head office. These order forms are taken to the distribution base, processed and the ordered items are given to the agents to deliver when they drop off the next catalogue. Handywares is now in a situation where it is able to expand. The markets it has chosen to consider are China, Germany, Hungary and Poland. We will use a complex set of criteria when analysing our shortlist of countries. Once the country is selected it will be necessary to perform an in depth market analysis enabling handywares to develop a market entry strategy Obstacles & Opportunities: Before any sort of marketing plan can be carried out it is important to analyse the current situation within Handywares through a SWOT analysis. ...read more.

Middle

Because the regulations for imports can change without notice, it is important to keep frequent contact with these agencies and associations. Personal relationships play a very important role in the Chinese business world, so establishing close relations with counterparts and government agencies is of great importance if you want to make any sales. Despite the level of government involvement China still operated under a socialist society and stability within the government is very high. This could prove advantageous over countries such as Poland and Hungary who have only recently completed the transition from communist economies. Economic considerations Financing is very difficult to obtain and if this is necessary it will have to be done though an international financier. Due to the planned economy in China unemployment is low, labour is often expensive and there is a minimum wage in operation. Country Infrastructure With regard to the media trade show exhibitions are a very effective way to expose and introduce new products. A trade show is also probably the best way for a Chinese company to get to know foreign companies. Regular attendance at Chinese trade shows leads to valuable contacts. There is also a very high readership of regional newspapers and it is very easy to locate specific markets though the use of different publications. Although the domestic equipment market is stable right now, there are hindrances to the future development. The poor transportation infrastructure will play a major role in slowing down the industry's growth. The size of China makes it critical for domestic equipment suppliers to have a working transportation network to rely on. As result of double-digit inflation, the cost of raw materials has risen quickly. This also includes possible Handywares materials like tin plate and plastics. It is simply hard to get reasonably priced materials. Legal system Chinese companies also mimic western business strategy and often invest in similar equipment. ...read more.

Conclusion

Budapest is by far and away the largest of these and is predicted to continue growing as European integration furthers. Market Transparency As Hungary pushes for membership of the EU information on the economy is becoming more transparent. There are set procedure for opening business and although there is a black market in Hungary the government is continually working to reduce this threat Competition There is no direct door to door competition in Hungary, however companies such as Tehere and Curver-Rubbermaid operate through retailer networks and Tupperware operates though the 'Tupperware Party' system. Option No. 4: Poland Politics Communication is slow with lots of bureaucratic red tape, to be cut through, High emphasis on face to face communication. An Agent would definitely be required to handle meetings, and to go through appropriate channels, so whatever was required was dealt with quickly. Economics Poland has the highest inflation of the shortlist at 13%. There is also high unemployment. Purchasing power based in the Urban areas, which is not a disadvantage as long as we choose to enter though an urban centre. The economy is based around fossil fuels, textiles and metals with traditional industries of Farming and Minerals being replaced. This shows a development of the economy that should create more disposable income. However this can lead to an unstable economy due to the velocity of change. Market Transparency Business ethos is still very backward, with cash and wire transfers the only source of payments. There is a network of corruption which even penetrates the public institutions. Infrastructure Although there is an effective network of motorways and railways it is the furthest country form the far east be sea. Market Demographics Population of 38.7 million people is situated on the Adriatic sea coast, with 65% of the population living in urban areas. Strategies & Tactics: Here the broad marketing strategy or "game plan" is outlined. Important points mentioned here are the target market, positioning, product line, price, distribution outlets, sales force, service, advertising, sales promotion , R&D, and marketing research. It gives a broad overview of the plan for achieving the marketing objectives. ...read more.

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