Spree Watch Marketing Plan

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 Spree Watch Marketing Plan

A marketing plan details the strategies used by a company to make the business known

to it's potential customers. The marketing plan details the target audience, how to make the

product or service known to them and the marketing mix. The market mix in the price,

promotion, product and place(distribution) of the product. A marketing plan may also entail the

marketing or advertising budget which lists the expenditures of advertising the product.

Therefore, based on recent research of the watch industry, a gap was identified which would be

satisfied by the Spree Watch. Therefore, the marketing plan is about Spree Watch. The

marketing plan of Spree Watch includes the primary target customers, methods of determining

customer needs, marketing mix and it's advertising budget of Spree Watch.

Primary Target Market

Our primary target market is expected to be determined by age and gender. Half of the

customers of fashion watches are between the age of 18 years and 34 years. This group is

thought to purchase more branded fashion watches compared to the older generation.

Therefore, the group will be our center of concern. Generally, people under the age of thirty

five years buyover fifty percent of the branded watches as shown in the table below;

Age Percentage of Percentage of buyers Relative index

consumption over 17 years

18-24 years 19% 13% 1.46

25-34 years 33% 19% 1.74

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35-54 years 35% 40% 0.88

55+ 13% 29% 0.45

Those between the age of 25 years and 34 years are thought to purchase the highest

number of watches that's 74% than that of the average consumer. Also, young females of the

age of 18 years and 24 years are expected to be major buyers as the group is thought to be

keen on fashion and style. Ladies between the age of 25 years and 34 years are expected to be

our second highest purchasers. They are expected to buy more watches than the other age-sex

combinations.

Methods of researching needs and wants of consumers

The objective of the business is to satisfy the needs and wants of our customers. To

satisfy those needs, they have to be determined through thorough research. We will determine

the needs and wants of the customers through interviewing stakeholders, competitive analysis,

and interviewing customers. Interviewing stakeholders involve taking knowledge from

stakeholders such as sales and support teams as they know the product and the customers

(Timoshenko & Hauser, 2019). Asking for feature requests, bug reports, and other information

from the customer's mouths. Combining this information to come up with a list of wants and

needs of customers.

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 Another method is through competitive analysis. Analysis of strengths, weaknesses,

opportunities, and threats (SWOT) of the competitors to determine the gaps in the industry and

venture into them (Camilleri, 2018). The gaps may include unsatisfied customer needs and their

wants. Interviewing customers is the optimum method of identifying customer needs and

wants if the customers are willing to respond. The method involved asking directly the

problems they face and what features they want on the product (Terninko, 2018). Even those

unwilling to respond can always provide insights that may lead to successful innovation.

Marketing mix

Generally, we will offer the Spree Watch using penetration pricing strategy, intense

advertising, and thorough distribution on the verge of increasing our sales and profits.

Product

We will offer between 20 to 30 distinct designs of Spree Watch in year 1. A third of

these will have a casing built with metal imitating several of the earlier and recent styles. This

design is estimated at over twenty five percent of the potential buyers. We will come up with

unique licensed designs and shapes for potential buyers below 25 years. The most unique

feature of this line of watches will be their unique shapes with most of them being hexagonal,

geometrical, oval, diamond, trapezoid among others. To reach out to younger children below

18 years, we will design watches with cartoon.

Pricing

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 The product will be offered for a market penetrating price of $50. The price is slightly

exceeding that of Swatch because we believe we have quality and feature merits compared to

Swatch. This price together with our features and quality aims at increasing the market share of

a new product.

Promotion

We will use personal selling for the start whereby four new sales representatives will be

employed to help in growing our new sales distribution channel. Also, a sales trainer will be

recruited to train the four new sales representatives. Each would earn $100,000 and that would

be within our $500,000 sales representative budget. Compared to the advertising intensity of

our competitors, we have to advertise more intensively for the customers to know our product.

Although our market share goal in the first year is 3%, we will set our advertising budget at

$1,000,00 so that we can achieve a slightly higher advertising index than our competitors.

Place (Distribution)

Since we have strong distribution outlets nationwide covering approximately 75% of

watch sales, we will not limit ourselves by distributing to specific regions only. Our distribution

channels will place Spree watches in approximately 75% of the regions of our target market.

We will employ current normal distributor markups.

Advertising Budget

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 An adverting budget is a financial plan of the promotional expenditures of the company

designed to meet its current objectives. The advertising budget of Spree watches will be as

follows;

Spree Watch Marketing Plan

Expense Amount

Sales representatives @$100,000 each $400,000

Sales representative trainer $100,000

Video marketing (ads) $200,000

Social channels (twitter) $80,000

Media advertising (TV) $20,000

Market research $140,000

Own media $60,000

Total marketing budget $1,000,000

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 References

Camilleri, M. A. (2018). Understanding customer needs and wants. Tourism, Hospitality

& Event Management, 29-50. https://doi.org/10.1007/978-3-319-49849-2_2

Terninko, J. (2018). Understanding your customer. Step-by-Step QFD, 49-74.

https://doi.org/10.1201/9780203738337-4

Timoshenko, A., & Hauser, J. R. (2019). Identifying customer needs from user-generated

content. Marketing Science, 38(1), 1-20.

https://doi.org/10.1287/mksc.2018.1123