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MKT/574 v1 Strategic Marketing Plan Part A: Environmental Analysis and SWOT Analysis (Due in Wk 2) Company Description Describe the company you are designing the plan for

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MKT/574 v1 Strategic Marketing Plan Part A: Environmental Analysis and SWOT Analysis (Due in Wk 2) Company Description Describe the company you are designing the plan for. Include: • • • • Mission Statement Vision Statement Product line description Company information, such as the size of the company Environmental Analysis Analyze the forces that affect the company and marketing efforts. Competitive Forces Analyze the company’s key competitors. You may choose to use a BCG Matrix or attribute checklist to compare your company against its competitors. Describe any strategic moves the competition has recently made. Estimate your market share. Identify key competitive advantages against your competitors. Economic Forces Analyze the economic environment in the areas affecting your business. Consider differences within your industry and the economic impact on suppliers. Political Forces Analyze relevant political forces. Examples may include an election year or a law to drastically reduce or eliminate plastic waste in your county. Legal, Regulatory, and Ethical Issues Analyze the legal, regulatory, and ethical issues that may affect your business. Considerations may include local laws such as a ban on the use of plastic bags, the ability to post billboards, or a possible increased regulation on direct mail. Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 2 of 7 Technological Forces Analyze whether your company will be affected by emerging technologies or trends in hardware and software industries Social Forces Analyze social trends and how they may affect your business. Considerations may include if your business will be affected by demographic trends, a growing dependence on computers, or whether interest in your product might be affected by growing preferences in the way things are done or changing social values. Current Target Markets Define the company’s current target markets. Describe the demographic, geographic, psychographic, and product usage of these targets. Review Current Marketing Review the company’s current marketing tactics. Consider how people find out about the product, how they get information about the product or service, what might be involved in the buying process, and what money is available for marketing. If your company is a start-up, describe your competitors’ current marketing. SWOT Analysis Assess your company’s strengths, weaknesses, threats, opportunities, and then evaluate how to address these in your marketing plan. Strengths Assess your company’s competitive advantage. Consider core competencies, assets, location, practices, etc. that are distinct in the way the organization meets the needs of its customers. Weaknesses Assess what limits the company may have in its current marketing strategy. Consider if there is a company weakness that needs to be addressed through Public Relations or Marketing. Opportunities Assess the opportunities you see based on trends or environmental conditions. Threats Assess the threats or limitations that may interfere with the company’s ability to meet its objectives or interfere with marketing plans. Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 3 of 7 Strengths to Opportunities & Converting Weaknesses and Threats Convert weaknesses and threats to strengths, then strengths to opportunities in the marketing plan. Consider the implications for addressing supplier relationships, implementing new technologies, or changing the product line or addressing new markets. Marketing Objectives Establish marketing objectives based on the results from the SWOT analysis. Marketing objectives must align with corporate objectives, modified by the company’s resources. Objectives should include a date for the completion of the objective and the way in which success will be measured. For example: The company will expand its marketing efforts to include a new market segment of 21- to 29-year-olds. This will entail the development of a customized product by June 2020 that will address the specific psychographic and technological needs of this age group. This strategy is expected to attain a 20% growth in overall sales by January 2020. Customer loyalty (willingness to recommend the product) will increase by 30%. Part B: Marketing Data Analysis (Due in Wk 4) Internal Data Evaluate internal sources of information available to you inside the organization and what information you will receive from each source. Identify 3-6 sources of internal data. Insert or remove rows as needed. Source Example: Sales data What it Measures Monthly sales by specific product Data Average sales that month in US dollars for each of 10 products. Data can be segmented by business and consumer markets. Copyright 2020 by University of Phoenix. All rights reserved. Potential Usage Can be used for trend analysis, projections, and to measure effectiveness of promotions. Strategic Marketing Plan MKT/574 v1 Page 4 of 7 Secondary Data Evaluate secondary data sources and the specific information you need from each source. Insert or remove rows as needed. Source What it Measures Data Potential Usage Example: retail store analytics Dollar value of sales by quarter by major product categories Total sales of major players Market Share Analysis Seasonal patterns Primary Data Evaluate primary data needs to create and evaluate the marketing plan. Insert or remove rows as needed. Source What it Measures Example: Focus group Product usage, motives, identify group level satisfaction, decision process, etc. Data Qualitative Copyright 2020 by University of Phoenix. All rights reserved. Potential Usage Identify different reactions of market segments to product. Identify marketing opportunities, product/service flaws and opportunities Strategic Marketing Plan MKT/574 v1 Page 5 of 7 Source What it Measures Data Potential Usage Customer Relationship Management Establish customer touchpoints and develop appropriate CRM events for customer acquisition, retention, and profitability. Insert or remove rows as needed. CRM Touchpoint Example: Customer profile information on website Purpose & CRM Objective Starts the account for visitors: name, geography, email address (Customer acquisition) Data Presale: geographic location; customer id, source of reference Email address Post sales: address, product purchased, quantity, price. Potential Data Usage Track new and returning customer counts, total period purchases by customer ID, geographic sales data. Can be used for loyalty rewards, retention, and targeted marketing. Part C: Market Strategy, Marketing Channels, Implementation, and Monitoring (Due in Wk 6) New Target Markets Determine any new markets for your strategy and describe how you will provide value to each target market. Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 6 of 7 Marketing Mix for New Target Markets Determine adaptions for each new target market. • • • • • Products Price Distribution Traditional Promotion Online Promotion Marketing Implementation Create the implementation for your marketing plan. Describe how you will organize and implement the plan, such as whether it will be organized by market, geography, and who is responsible for marketing decisions. Marketing Communication Channels Evaluate the marketing communication channels you will use to reach selected audiences. Include Internet and traditional communication channels to convey key messages. Describe the advantages and disadvantages of each channel you select. Insert or remove rows as needed. Channel Example: Direct mail Target Market Middle class residential Advantages Can include coupons Disadvantages Expense and low return rate for given product Strategic Actions Develop specific activities required to implement the marketing plan. Identify the person or role who will be responsible for each action, when it will be complete, and what standard or metric indicate that the activity is complete. Insert or remove rows as needed. Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 7 of 7 Action Example: Design flyer for direct mail campaign Date for Completion 1/1/2021 Person/Role Responsible J. Smith, graphic designer Standard/Metric Approval by senior marketing team and legal Monitoring Develop the measurement to identify how you know you have been successful for each strategic action. Specify the measures to track performance against goals. Identify standard reports from your online and traditional marketing efforts. Insert or remove rows as needed. Action Example: Direct mail flyer Target 1100 new inquiries Person Responsible Western regional manager Copyright 2020 by University of Phoenix. All rights reserved. Inter-measurement 500 new inquiries first month of campaign 1 Part A: Environmental Analysis and SWOT Analysis Queenneidra Quarles Department, Institutional Affiliation MKT/574 April 19, 2021 2 Part A: Environmental Analysis and SWOT Analysis Company Description Caterpillar Inc. was initially started as Caterpillar Tractor Co. in 1925 in California. in 1986, the organization was incorporated to Caterpillar Inc. in Delaware State. Caterpillar is the leading global manufacturer of mining and construction equipment. Notably, the organization primarily deals with construction industries, transportation, and resource industries (United States Securities and Exchange Commission, 2021). The construction industry deals with the manufacturing of forestry, infrastructure, and building machinery. Mission and vision statement. The company's mission statement is “to enable economic growth through infrastructure and energy development and to improve solutions that support communities and protect the planet" (Caterpillat.com, 2021). The vision statement is creating a "world in which all people's basic needs-such as shelter, clean water, sanitation, food, and reliable power- are fulfilled in an environmentally sustainable way and a company that improves the quality of environment and communities where we live and work" (Caterpillar.com, 2021). Environmental Analysis The environmental analysis will focus on the competitive forces, and PESTLE analysis. Competitive forces. Key competitive advantage Target Market Market share Marketing Strategy Products quality Caterpillar The organization has a high level of innovation, thereby making it the leading world's manufacturer of building and infrastructure machinery. The organization also uses latest technology like drones that allow the company to remain ahead of its rivals (Caterpillar.com, 2017). The company targets customers in the construction industries, resource industries, financial product segment, energy, and transportation, independent contractors, and individuals owning businesses and agricultural activities Machinery industry: 82.17% (CSI Market, 2021) John Deere Competitive advantages include customer service, price, innovation, product performance, and quality (SEC, 2020). The firm uses direct selling, online, and website, characterized by understanding clients' needs, using the latest marketing technologies and analytics. The company has very quality products The firm uses direct selling, company website, and social media networks The company targets farmers and customers in different segments like construction and forestry, turf, and agriculture. Agricultural equipment: 18.61% (CSI Market, 2021) The company's products have high performance and quality 3 Distribution channels The company uses direct sales and distribution centers (SEC, 2021). The company uses direct sales for its road-building equipment, dealers for resale, and independent distributors (SEC, 2020) PESTLE Analysis. Political forces. Caterpillar Inc. is a global organization that sells its products in different parts of the world. Therefore, political factors like government regulation in the international market affect its operations; for instance, the organization's competitive market conditions in the Chinese market led to reduced sales, affecting the firm's sales in the Asia/Pacific market (SEC, 2021). Economic forces. A crucial economic factor was reduced customers' purchasing power due to the COVID-19 global pandemic. The organization relies on the United States and Canada as its biggest market, which in this case, was significantly affected by the outbreak. The pandemic led to the global economic downturn, resulting in reduced demand for the firm's services and products. Noteworthy, macroeconomic factors affecting CAT include reduced corporate earnings, higher interest rates, reduced degree of business confidence. Moreover, an increase in the price of oil and supply chain disruption affects the business's financial performance. The organization is also affected by the government policies on spending and taxes. It is worth indicating that the government spending funds a substantial portion of economic development like rail systems and highways. Thus, tax regulations determine investments and asset depreciation, affecting investment decisions; for instance, undesirable developments like increasing taxes or reducing public spending impact the firm's revenues. In nations where the firm manufactures its products, the currency change, for instance, the Chinese Yuan, affects the financial conditions. Social forces. The global pandemic resulted in reduced disposable income and investment, in turn affecting customers' ability to buy CAT's products. Accordingly, a change in customer's attitudes and loss of product confidence may affect their buying behavior. Technological forces. The organization relies on innovation to deliver quality and highperforming products to the market. Thus, the organization uses the latest technologies, such as 3D printing, an additive manufacturing technology that allows the firm to eliminate quality issues (Caterpillar. com, 2017). Moreover, the firm also uses photogrammetry and drone technology, which allows the firm to remain ahead of its competitors. However, CAT relies on information technology networks and systems. Therefore, with the advent of cyberattacks may expose the firm's confidential data leading to a significant loss. Legal forces. The company operates in an industry governed by anti-corruption regulations and laws. CAT is affected by United States regulations provided by Customs and Border Protection, the Directorate Trade Controls, and the Bureau of Industry and Security (SEC, 2021). The company is involved in different lawsuits and claims associated with 4 manufacturing, product design, and performance liability (SEC, 2021). Notably, the firm's operations are regulated by the U.S. authorities imposing significant compliance with U.S DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frack). Thus, failure to comply with this regulation could subject the enterprise to severe financial effects. Environmental forces. The company is highly regulated by the local, state, government, and global environmental regulations governing the disposal of waste, transport, and greenhouse gasses emissions. Thus, the firm is mandated to abide by the air emission regulations relating to internal combustion engines. Failure to comply with these regulations exposes the firm to negative publicity, affecting the firm's financial operations. Current Target Markets The company targets customers in the construction industries, resource industries, financial product segment, energy, and transportation, independent contractors, and individuals owning businesses and agricultural activities (SEC, 2021). Reviewing the Current Marketing The company uses online marketing to target its customers. The organization participates actively in social media platforms like Instagram, Facebook, and Twitter to connect with clients and fans (Caterpillar, 2021). The company is an established website where it posts its various products. Noteworthy, customers get information about CAT's products through the distribution centers. CAT has quality customer services and relationships with clients through direct sales. SWOT Analysis Strengths. CAT has skilled and competent employees capable of designing and creating innovative products. Second, the firm has technological capabilities, which allows CAT to remain ahead of its competitors. CAT is widely known for its quality and high-performing products. The company has high revenues, assets, thereby enabling the firm to conduct research and development and invest in innovative design to meet market demands. CAT has a strong brand and international network of distributors. Weaknesses. Despite being innovative, the organization has a low rate of creativity and innovation, which is attributed to the low rate of innovation in the machinery industry. The organization also relies heavily on few markets, such as Canada and the United States, limiting its market connection in emerging markets. Opportunities. The organization should increase its global market reach by investing in emerging markets like China and African nations. The organization should also invest heavily in mining industries by targeting emerging nations like China, the biggest producer of rare earth minerals, gold, and coal. Threats. The organization faces stiff competition from John Deere, Hyundai Construction Equipment, and Hitachi Construction Machinery. Second, the organization relies on third-party technology system providers, which may risk the firm's confidential information. Overreliance on the global supply chain affects the firm's operations. According to SEC (2021), 5 the company was highly affected by global supply chain disruption caused by the COVID-19 global pandemic, reducing its revenues from $53,800 to $41,748 (in millions USD). Strengths to Opportunities & Converting Weaknesses and Threats The organization should use its strong brand to venture into new emerging markets like China. CAT is a global organization with a positive and strong brand and image. Therefore, the management should focus on this strength to launch its products in other global markets like Africa and China. The organization should also use its lean manufacturing process to streamline its supply chain and logistics. The organization should stop overlying a few nations for its manufacturing plants. Instead, it should establish its manufacturing plants closer to market proximity, reducing the risk of global supply chain disruption. The organization should leverage its technological advancement, such as 3-D technologies, to create innovative products that will attract emerging markets like China. The use of technological advancements will allow the firm to design innovative mining machinery capable of competing with Hyundai Construction Equipment and Hitachi Construction Machinery in the Asian market. Marketing Objectives i. ii. iii. CAT will expand its products to emerging markets in 2 years. CAT will increase its global mining market share by 10% Caterpillar will increase its revenues by 15% through innovation. 6 References Caterpillar.com. (2017). Building The Future: Our Best Modern Breakthroughs. https://www.caterpillar.com/en/news/caterpillarNews/innovation/buildingthefutureourbes tmodernbreakthroughs.html Caterpillar.com. (2021). Social media. https://www.caterpillar.com/en/news/social-media.html Caterpillar.com. (2021). Vision, Mission, Strategy, & Principles. https://www.caterpillar.com/en/company/sustainability/vision-missionstrategy.html#:~:text=Our%20mission%20is%20to%20enable,communities%20and%20p rotect%20the%20planet. CSI Market. (2021). CAT's Competition by Segment and its Market Share. https://csimarket.com/stocks/competitionSEG2.php?code=CAT CSI Market. (2021). D.E.'s Competition by Segment and its Market Share. https://csimarket.com/stocks/competitionSEG2.php?code=DE United States Securities and Exchange Commission. (2020). John Deere Form 10-K. https://s22.q4cdn.com/253594569/files/doc_downloads/2020/08/DE_Current_Folio_10K _MBSF_ActiveHyperlinks_V2.pdf United States Securities and Exchange Commission. (2021). Caterpillar Form 10-K. https://d18rn0p25nwr6d.cloudfront.net/CIK-0000018230/4f1d960f-1edb-4c9f-b1932145416078fe.pdf MKT/574 v1 Strategic Marketing Plan Part B: Marketing Data Analysis (Due in Wk. 4) Internal Data Evaluate internal sources of information available to you inside the organization and what information you will receive from each source. Identify 3-6 sources of internal data. Insert or remove rows as needed. Source What it Measures Data Potential Usage Example: Sales data Monthly sales by specific product Average sales that month in US dollars for each of 10 products. Data can be segmented by business and consumer markets. Can be used for trend analysis, projections, and to measure effectiveness of promotions. Finance data Monthly cost of operations in organization. Cash flow elaborates amount of cash generated within a specific period. Data for finance can be distributed as cost per unit, this includes labor and materials. Average expenses on monthly and daily basis as transactions occur. Finance data is used to determine cost incurred this includes determining when to place orders for suppliers and allows organization to determine costs and prices to keep profits. Marketing data Promoting products and company services. Such includes brand awareness and potential customers. Creates reports on customer characters and satisfactions, includes social media campaigns and level of competition in the market. Helps management determine the most relevant marketing campaigns to put into place and most effective strategies in accordance with customer’s needs. Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 2 of 7 Source What it Measures Data Potential Usage Human resource data Helps measure the level of productivity for employees cost of recruitments and training for workers. Information about the level of production of employees, factors affecting the employee, and relationship level between employees and management (Johnston, 2017). Identification of areas of improvement for encouraging employees. Such includes empowerment and investment into their skills and talents. Customer data Customer’s satisfaction and experience with products and services provided by company. Provides data on customers’ needs what should be improved and what should be eliminated. Company can use this data in a move to try and build good relationship with clients; This includes strong personas which would promote a better marketing strategy. Surveys Thoughts and ideas of given groups and individuals. Data on marketing information provide information on various groups’ needs and wants includes customers, employees, and suppliers. Creates a clear and reliable pathway for service delivery in accordance with needs of specific groups such promotes creativity for company. Secondary Data Evaluate secondary data sources and the specific information you need from each source. Insert or remove rows as needed. Source What it Measures Data Potential Usage Example: retail store analytics Dollar value of sales by quarter by major product categories Total sales of major players Market Share Analysis Seasonal patterns Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 3 of 7 Source What it Measures Data Potential Usage Internet Marketing information, data collection and communication Market value of products, customers’ needs and market research. Company communication with clients/customers advertisement of product and service as it creates a platform for supplier’s customers and manufactures to interact. Government agencies Government taxations rates, human population and community’s needs Cost of production, rate of supply and amount produced Identify the vulnerability rate of society; this promotes the supply rate for products in accordance with needs (Golroudbary et al., 2020). Libraries Past present and future information of business environment, business publications Research and current developments in market, includes current and future expectations for customers and such. Helps organization plan relevant strategies for current customers’ needs improved services and products. Commercial information Economic development political scenes and market research Countries market information, rising competitors and the development rate Helps companies identify potential competitors; this helps provide a conducive avenue for promoting products and services. Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 4 of 7 Primary Data Evaluate primary data needs to create and evaluate the marketing plan. Insert or remove rows as needed. Source What it Measures Data Potential Usage Example: Focus group Product usage, motives, identify group level satisfaction, decision process, etc. Qualitative Identify different reactions of market segments to product. Identify marketing opportunities, product/service flaws and opportunities Interviews Elicit data about a product or service Qualitative research Provide ground for implementation of new services and give a conversation for advancement in customer relation and management. Questionnaires Employee satisfaction, Quantitative customer needs and information suggestions. Helps in the identification of potential challenges and necessary improvements of service delivery in accordance with customers needs. Archives The history of Firsthand information products, and provides an avenue to familiarize with the current products and services Provides evidence for court hearings, gives traces on the various products and services. This helps historians interpret the past. Photographs Quality and appearance of products and services Identify the various setups for products and services, the presentation level Qualitative data on objects, provides a Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 5 of 7 Source What it Measures Data clear description of an object or commodity Potential Usage and mode of attracting customers. Customer Relationship Management Establish customer touch points and develop appropriate CRM events for customer acquisition, retention, and profitability. Insert or remove rows as needed. CRM Touch point Example: Customer profile information on website Purpose & CRM Objective Starts the account for visitors: name, geography, email address (Customer acquisition) Data Presale: geographic location; customer id, source of reference Email address Post sales: address, product purchased, quantity, price. Potential Data Usage Track new and returning customer counts, total period purchases by customer ID, and geographic sales data. Can be used for loyalty rewards, retention, and targeted marketing. Customer orders on goods and services information on application Provides the identity of the customer, specified orders quantity and type also prices Delivery notes, delivery location order type and payments and time for delivery Helps identify orders for customers who are far, the mode of delivery to the customers. Online advertisements Attract customers to the business websites online Products on sale, pictures videos and offers available Helps in promoting the company’s exposure to the public, data is used to create a welcoming image about the services offered. Social media pages Targeting customers’ via media platforms helps attract potential Name of organization location, legibility and services offered Helps ideally in boosting the reputation of the Copyright 2020 by University of Phoenix. All rights reserved. Strategic Marketing Plan MKT/574 v1 Page 6 of 7 CRM Touch point Purpose & CRM Objective Data investors and customers. Press releases Reach the consumers and potential customers. Clarify on various questionable facts about organization and products (Borgersen et al., 2018). Potential Data Usage organizations brand and creating relationships with customers as much as identifying and responding to reviews from customers. Products offered news releases, company’s information, and physical address. Copyright 2020 by University of Phoenix. All rights reserved. Provide customers and society reliable and updated information about products and services, includes new products its features and offers. Strategic Marketing Plan MKT/574 v1 Page 7 of 7 References Borgersen, N. J., Naur, T. M., Sørensen, S. M., Bjerrum, F., Konge, L., Subhi, Y., & Thomsen, A. S. S. (2018). Gathering validity evidence for surgical simulation: a systematic review. Annals of surgery, 267(6), 1063-1068. Golroudbary, S. R., El Wali, M., & Kraslawski, A. (2020). Rationality of using phosphorus primary and secondary sources in circular economy: Game-theory-based analysis. Environmental Science & Policy, 106, 166-176. Johnston, M. P. (2017). Secondary data analysis: A method of which the time has come. Qualitative and quantitative methods in libraries, 3(3), 619-626. Copyright 2020 by University of Phoenix. All rights reserved.