This part of the Conscious Capitalism simulation assignment is individual. You will work with your team members and determine an appropriate digital marketing plan to include in your Benchmark - Digit
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EnVLuxe: Marketing Plan
Team: EnVLuxe
Hollie Delgado
Janniece Pradier
Janell Samano
Joshua Schwengler
Iesha Shepheard
Marketing, Grand Canyon University
607: Marketing
John Cotoia
6/2/2021
Greetings Gameilsworld Board of Directors, Our objective is to grow digital presence, promote new products and services, and increase sales while keeping a green footprint in our global economy. Please review this Marketing Plan to learn about who we are, our core philosophies and strategic plans that will enable us to remain a successful entity and driving force in the bike industry. We are confident that our standing within the industry will continue to grow as seen in our financial and market performance reports. We have also provided analysis based upon the SWOT methodology that will give a comprehensive evaluation of our strengths, weaknesses, opportunities and threats of not only of our company but also our customers, competition along with projections for the upcoming year.
| Table of Contents |
Business Summary
o Our Company & Mission
o Headquarters, Office Locations
o Leadership Philosophy & Team
o Mission Statement
o SWOT Analysis
Business Initiatives
o Overarching initiatives: marketing initiatives, goals, metrics
Target Market
o Industry Name
o Buyer Persona(s)
o Competitive Analysis
Market Strategy
o Product
o Price
o Promotion
o People
o Process
o Physical Evidence
Tactical Plan
Financial Performance
EnVLuxe Marketing Plan
Business Summary
Our Company & Mission
EnVLuxe is headquartered in New York City with stores in Rio de Janeiro. With expansion into Amsterdam, and Bangalore planned in Q5. The company’s mission is to provide an innovative, environmentally friendly carbon fiber bicycle line. Our company's philosophy aligns with Conscious Capitalism focused on these core values:
Creating a culture where honesty and respect is given to all stakeholders.
Providing award winning white-glove personalization that includes visibility in the complete process tailored to a positive customer experience.
Delivering environmentally friendly products that promote clean air.
Our Market Team
Janniece Pradier, VP of Marketing. She delivers our customers' needs through brand design, pricing, and advertising working to understand the competition, the trends and makes strategies that align the company toward fulfilling customer needs and wants.
Janell Samano, VP of Sales & Secondary VP of Marketing. She works to understand the market and locations that have wide customer growth opportunities and focuses attention on store openings and making sales territory decisions that helps expand market share and solidify our sales goals and pursuits.
SWOT Analysis
Our core marketing strategy includes evaluating how the brand lean into what it does well, improve what it does not, capitalize on what it can do, and defend against what could challenge it. With that in mind, here is our SWOT analysis for Quarter 4.
Strengths
Our company has the highest balanced scorecard in the industry for overall business performance.
Our Company has effectively managed the resources of our firm, being ranked the highest in financial performance and wealth for Q3.
We are producing quality-brand products. Two out of three of our products were accredited by the union.
Weaknesses
We want to update all our products with quality parts and be more dominant in the industry in all target segments.
We are undergoing evaluation by the Union to gain accreditation; however, we are still missing some requirements for our first target market segment: Mountain bikes.
We have also ranked the lowest for investment in future within our competitors, which reflects the willingness of our company to spend current revenues on future business opportunities and goodwill.
Opportunities
The industry may want to offer more segments as the market continues to increase. We will do well at catering to other unique segments.
Customers are still willing to buy, but at the same price points that we have seen in recent quarters.
We are shifting our focus on Opening more locations in all 4 geographic areas. By maximizing our store footprints will allow us to shift and prepare for longevity and growth through future business opportunities in all locations.
We are also continuing to invest in our employees by investing in research to promote employment involvement and how to become a good neighbor.
We plan to focus on improvements in our production facilities to create a model for the whole industry that can foster a positive impact in the community.
Threats
Production cost and changes are expensive. Our customers are not willing to pay more, which is less ROI for our company.
Prices are not expected to improve, but EnVLuxe must make various of adjustments that will cost more in production.
The chemicals from our products are affecting our workers.
Thirty percent or more of the parts assembled at the production facility are not meeting quality control standards.
The production facility is currently working at about 60% of its anticipated throughput. Part of the problem is worker motivation. Another part is the design of the production process and material handling procedures.
EnVLuxe Balanced Score Card
Business Initiatives
EnVLuxe has the ambitious goal of increasing our market presence. To help the business do that, our marketing team will pursue the following initiatives in Quarter 4:
Value-Driven
Description: Our goal is to continue to focus primarily on making decisions based on our value of embracing conscious capitalism.
Goal of initiative: Our goal is to provide quality parts to our customers that meet quality control standards.
Metrics to measure success: 80% or more of our parts assembled meet the quality control standards.
Environmentally Responsive
Description: Our goal is to deliver environmentally friendly products that promote clean air and a safe environment for our employees.
Goal of initiative: Our goal is to place air-filtering plants throughout the production facility and separate employees from chemicals with respirators, protective clothing, and gloves.
Metrics to measure success: The entire production facility transferred into a “clean room.”
Optimize SEM Reach
Description: Over the next several quarters, we want to optimize our SEM reach organically and paid. EnVLuxe will be focused on the quality of the ad, as this will be a key part in its performance.
Goal of initiative: Our goal is to increase overall clicks. In addition, EnVLuxe plans to invest $50,000 total in social media expenses and put a focus on developing a channel putting optimal focus on Instagram.
Metrics to measure success: 3,000 organic page views per month /50 content downloads per month.
Target Markets Segments
In Quarters 4 to 6, we are targeting the following segments where we’ll sell our products and reach out to customers:
Speed: Biking, Sport, Business, and New Venture
Mountain: Biking, Sport, New Venture, and General News
Recreation: Leisure & Entertainment, Health & Fitness, New Venture, and General News
Buyer Personas
Within our target markets, we have identified the following buyer personas to represent our ideal customers:
Tom
Tom is 54 years old. He is a retired Commander of the Air Force. He works in Budgeting for a living, spends his free time with his family, and working out. Ultimately, Tom wants to go out on more bike rides through trails as a part of his daily workout routine.
Christina
Christina is 29 years old. She works in Real Estate and spends her free time hanging out with friends, exercising, and loves to take hikes. Christina is a single woman with no children. Ultimately, Christina wants to start riding her bike that she purchased for its speed up the mountain as exercise.
Floyd
Floyd is 30 years old. He is a postman who is an avid racer who spends his time researching and competing in semi profession bike races. He is truly knowledgeable about the sport, bike function, and cares about performance.
Competitive Analysis
Within our target markets, we expect to compete with the following companies:
Carbo
Products we compete with: Carbo Speed, Carbo Comfort, and Carbo Mountain
Other ways we compete: Carbo market share takes over almost 50% of the market. Carbo is also the highest rated brand in recreation and speed.
Bikes Unlimited
Products we compete with: Roadmaster, Hybrid, High Mountain, LifeWay, SpeedWay, & Arrate
Other ways we compete: Bikes Unlimited ranks the highest brand in mountain and offers the most affordable bikes with and without a rebate and offers the most bikes in the industry.
Your Local Cycle-Path
Products we compete with: Social Path 2.0, Beaten Path 2.5, and Running Path 2.0
Other ways we compete: Your Local Cycle-Path offers the highest rebates in the industry.
Market Performance and Demand
Financial Strategy & Performance
EnVLuxe is solvent. Our company has significantly increased our total assets from quarter 1 to quarter 3. Total assets were $1,181,875 first quarter, $1,753,574 second quarter and $2,548,792 third quarter, respectively. Net fixed assets represent about 40.6% of total assets in the first quarter, 53.6%, and 63.6% in quarter two and quarter three, respectively. Our company currently has no long-term liabilities. As of the third quarter, 1.9% of EnVLuxe’s total capital consist of retained earnings. Our total assets decreased from 48.8% in quarter 1, 35% in quarter 2 to 24.6% in quarter 3.
Our company’s revenue increased by 69.8%, from $726,795 in the second quarter to $1,234,350 in the third quarter. EnVLuxe net operating cash flow was negative in quarter 1 (-$318,125), increased to $91,699 in the second quarter, and later to $335,218 in the third quarter. The cost of goods sold increased from $260,605 to 419,795 in the second quarter and third quarter, respectively, indicating a steady increase. Our gross profit increased from $454,450 to 790,228.
The operating profit was negative in the first quarter (-$320,000), increased to $68,699 and $323,246 in quarter two and quarter three, respectively. Depreciation also increased from $20,000 to 40,000, leading to increased total expenses from $385,751 to 466,982 in the second quarter and third quarter. EnVLuxe income was negative in the first quarter but consistently increased to $295,218 in the third quarter. Total investing activities remained constant in the first and second quarter ($480,000) but rose to $720,000 in the third quarter.
References
Game.ilsworld.com. (2021). game.ilsworld.com/Marketplace Business Simulations. Game.Ilsworld. https://game.ilsworld.com/marketplace-live/?tpl=student&studentID=11108656&sessionID=49b014e32ca3f5728df0605117060ecf&quarter=4&language=en-us&resource=demandprojection&parentResource=manufacturing&tab=workspace
