marketing plan for bdi
TRANSCRIPT
MARKETING PLAN forMARKETING PLAN for
Submitted to: Mr.Ken Gruber
Proposed by: Sho, Wei Xiao
Marketing Director of BDI
COMPANY
DESCRIPTION
Blue Dominion Inc. is a small trading company near Dundas Street West subway station in Toronto,Ontario. It is dealing with wholesale and retail business in GTA local markets. BDI was launched in 2010 as a wholesaler to supply drug stores, convenience stores and flea markets. With the application of new marketing strategy(direct marketing / personal selling) in 2011, BDI business consists of 95% retail(personal selling) and 5% wholesale. Currently BDI has products such as “White Flower Oil”, which cures back pain, headache and arthritis for blue collar workers. Actually BDI has been and will be a progressive supplier of health care for the blue collar workers and the grass class workers in the competitive environment
ENVIRONMENTAL SCAN
Social Factors There are about 35% workers in GTA are blue collar workers, including the native
Canadians. GTA has a huge blue collar class. They normally have a lot of back pain, neck pain, arthritis and so on. That means a huge market for the “White Flower Oil” and other health care products.
Competitive Factors
(1) Competition from other similar products
“Dakota”
(2) Competition from retail stores
“Shopper’s Drug Mart”, “Main Drug Mart”, and “Wal Mart”
Regulatory Factors: HST
HST was introduced in July 1st 2010. Our purchasing costs rise 7.6%
The price we offer our clients(convenience stores) remain the same before and after the introduction of HST. Our sales income drop 7.1%
However, now we only remit HST(one tax) to CRA. We can save some fees from the accounting firms and postal services
STRATEGIC FOCUS AND PLAN
VISION
Provide qualified health care products to our valued blue collar workers and grassroots people.
STRATEGIC FOCUS AND PLAN
MISSION
1.Increase market share in the next 5 years (2013-2018)
2.Strengthen the retail business(personal selling) and increase wholesale business
STRATEGIC FOCUS AND PLAN
GOAL
Increase market share from current 2% to 5% in the following 5 years
Import products directly from Asia in 5 years.Increasing our personal selling team staff from current 15
people to 25 people within next 5 years
STRATEGIC FOCUS AND PLAN
GOAL
Increase annual sales from current $300,000 to $500,000 in 5 years.
Increase annual profit from current $ 90,000 to $150,000 in 5 years.
STRATEGIC FOCUS AND PLAN
GOAL
Sell more products other than `White Flower Oil`, such as bandages, gloves(for construction workers), paintings and so on in the following 5 years.
Explore and discover more clients in GTA and southern Ontario in next 5 years. Now we only have about 18 convenient stores to sell our
products only in Toronto. We are going to add two more sales offices
STRATEGIC FOCUS AND PLAN
CORE COMPETENCE
Our personal selling team sells products door to door directly to our final customers. Customers do not have to travel and they save money for transit and time.
Also they have direct customer service and their opinions will be heard by our direct selling representatives.
Personnel/Management
STRENGTH1. A powerful mgmt team: Marketing, Finance,HR,
Purchasing and so on.2. A marketing director manages Retail(Personal
Selling) team and wholesale team.3. A very strong retail(personal selling) team. It
consists 15~20 door-to-door sales rep, friendly and hardworking. Personal selling team makes 95% of the business
Personnel/Management
WEAKNESS
1. The personal selling team consists of part-time workers(Saturdays,Sundays and even holidays). They are high school graduates, college students, housewives, and even part-time employees from another company.
2. Sales Rep of Personal Selling team has a frequent fluidity: people come and leave the company very frequently.
3. very weak wholesales team(5% of the business)
Products/Offerings
Strength1. Wide recognition of the main product “White Flower Oil”
2. Two choices of White Flower oil
(1) 20ml large bottle for high-income blue collar workers
(2) 10ml small bottle for low-income blue collar workers and grassroots workers
3. we do have some other products, such as bandages, one-time use masks(respirator), and gloves
Products/Offerings
WEAKNESS1.We have very limited products. The main product
is “White Flower Oil”. We have very limited choices of other product
2. We have very small quantity and stocks of above products. Sometimes we do not have enough supplies when we accept big orders from retailers.
Finance
STRENGTH
The company hires an experienced CA to do accounting(financial statement, cash flow, and income statement)
FinanceWEAKNESS
1. It is very hard to get low-interest loans from governments or banks, so we can not increase quantity and stock of our merchandises.
2. Some retailers always delay to make the payments of our merchandises
Research & Development
STRENGTH1. Employees from diverse background will give different opinions to improve
product packages, smells and son on.
Manufacturers in Asia have been advised to make curry-smell “White Flower Oil“ for our South-Asian background customers(Indian, Parkistani and Sri Lankan) and mint-smell “ White Flower Oil” for our west European customers.
2. We have done some research: The more people see our products, the more people will buy. A good rate is 1:5; a poor ratio is 1:15 and average ratio is 1:10
3. Our personal selling retail team do have some research about the relation of time
and excitement as shown below
Research & Development
WEAKNESS
As a trading company, not a manufacturer, BDI do not have a R&D team.
Employees’ opinion and research are not very professional
Market Segmentation/Positioning
Typical Working class group:
(1)Portuguese: Most of them live in the Portugal Villiage(Little Portugal) @ Dundas & Ossington.
(2)Italian: They live in Little Italy(College street between Bathurst and Dufferin)
(3)Korean: They live in Korean Town along Bloor Street West@Christie.
PRICING
Prices are very sensitive for our personal selling customers. We have competitive prices(10% lower than Wal Mart and 20% lower than Shoppers`, so that we can increase more market share
ABOUT PERSONAL SELLING
Law of Average: The system proven to find buyers. The more people see your product ,the more people will purchase the product. A good ratio is 1:5, a poor ratio is 1:15 and an average ratio is 1:10. It means 10% of the people who see our product will buy.
Five Steps:The system used to create impulse• Introduction: Who I am? What I am doing here?• Short Story: I am in the area today doing a massive promotion for “White Flower Oil” on
behalf of Blue Dominion Inc., a wholesale company.• Presentation: Brief introduction of “White Flower Oil”; Be clear and precise when
explaining the promotion• Close: Closing the deal is making sure the customer has come to a conclusion about the
purchase of a product
Rehash: It is to show your products and re-impluse your customer to buy other products
PROMOTIONPROMOTION
PROMOTIONInternet:BDI has its own website: www.bditoronto.ca
Also we make advertisement on these website: www.kijiji.ca
COMMUNITY INVOLVEMENTLIUNA LOCAL 183: LABOUR’S INTL UNION OF NORTH AMERICA
EXECUIVE SUMMARYBDI has been dedicated in supplying health products to serve the blue collar workers and grassroots
workers in the past three years.
Besides above mentioned products, we are going to add ``hand cream``, `foot cream``and so forth to our products list. BDI has been expected to grow rapidly in the next 5 years.
As a very effective marketing strategy, personal selling has consisted of 95% of the whole business.
Personal selling retail team consists of 15-20 door-to-door sales representatives, polite and hardworking. But the wholesale business is very weak(5%). We will hire more wholesale team workers and have even more competitive prices(10% lower than Wal Mart and 20% lower than Shoppers`, so that we can increase more market share.
Besides the downtown market, BDI is going to open two new offices in east-end(Lawrence-Markham)
and west end(Lawrence-Weston) to explore the whole Toronto market and surrounding area markets. Our ethnic promotion method is effective to grasp blue collar workers’ and new immigrants’ markets. We
will continue to co-operate with ethnic media(magazines, radios, TVs, Newspapers and so forth). We will involve more ethnic community activities, so we will have more chances to be exposed to the public.
CONTACT
ADDRESS: 2066 DUNDAS STREET WEST,TORONTO,ON
WEB: WWW.BDITORONTO.COM
EMAIL: [email protected]