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Strategy and Implementation Summary
Earthly Clean will leverage their multi-pronged competitive edge of a quality product, competitive pricing, and a grassroots, non-corporate business model. These three advantages will resonate with the target market.
Earthly Clean will have a marketing strategy that will focus on the green or environmentally friendly aspect of their products, the fact that profits go to support a green, grassroots organization instead of a large corporation, and lastly, the opportunity for the consumer to take a more active role with the company with the possibility for an additional source of income.
Earthly Clean’s sales strategy will focus on the high quality products offered and the ability to offer 100% customer satisfaction, ensuring a happy customer constituency.
5.1 Competitive Edge
Earthly Clean’s has identified a multi faceted competitive edge that will assist them in their fast market penetration.
- Quality products: All of the products sold by Earthly Clean are manufactured by a leading company, made for Earthly Clean to their specifications. This allows Earthly Clean to offer a very competitive product that meets the needs of the market.
- Competitive pricing: Earthly Clean is able to offer great pricing because they are purchasing the products directly from the manufacturer. While Earthly Clean pays out sale commissions to the various layers of distributors, this grassroots distribution model is still more efficient than the traditional distribution channel, keeping prices competitive.
- Grassroots, non-corporate business model: Instead of profits going to a large corporation, the profits are dispersed among the user distributors that assist Earthly Clean. This arrangement is quite rare, and attractive for the targeted customer segment.
5.2 Marketing Strategy
The marketing strategy is based on the need to generate visibility for Earthly Clean as a company that offers the following advantages:
- A wide selection of green products.
- Profits that go to environmentally friendly people, not a large corporation.
- The opportunity for users to become distributors, realizing an additional source of revenue.
The marketing strategy is one based on grassroots networking. This strategy is most effective when the person selling the products is passionate about what they are selling. This is specifically why environmentally friendly cleaning products were chosen, it is easy for people who care about the environment to be passionate about the products.
Networking is the key to increased visibility and distribution. Networking will take place in a number of venues including: the traditional work environment, social organizations (such as the Lions Club), religious organizations, and other gatherings/situations that bring people together. The distributor sets up a meeting with the prospective person (someone they generally already know and have some sort of relationship with), shows them the product catalog and provides them with samples. Once the consumer has had a chance to use the products and been impressed by them, another meeting can be scheduled to determine if the person is interested in making a purchase, and/or is interested in an additional source of income selling these environmentally friendly products.
5.3 Sales Strategy
Earthly Clean’s sales strategy will emphasize their high quality products and 100% customer satisfaction. By combining these two benefits, consumers are able to try the available products risk free. This provides them with the opportunity to test them out and determine if they are as good as they claim to be. Once the consumer has recognized the outstanding quality that Earthly Clean offers, the option of becoming a distributor becomes all the more attractive. If the consumer truly believes in the product, then it becomes that much easier to convince them that there is an excellent opportunity available that allows them to sell a product that they believe in, obtain an additional source of revenue, and make a positive impact on the environment. All of this will be done on a grassroots, one-to-one level.
5.3.1 Sales Forecast
Earthly Clean will be tracking both the sales to the individual consumers and the revenue received through commissions from sales from the various distributors. The forecast indicates that initially the bulk of revenue will be from sales to the individual customers. As time progresses and more distributors are secured, the amount of revenue from the distributors will increase. Earthly Clean has adopted a reasonably conservative sales forecast. Please review the following table and charts for a graphical representation of sales.
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||$5,973||$11,648||$21,548|
Earthly Cleaning has identified several milestones which will be used as goals for the organization. Milestones were chosen to be as quantifiable as possible to aid in achievement. The following table details the specific milestones and provides a time frame for the accomplishment of each one.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Business plan completion||1/1/2003||10/1/2003||$0||Devon||Business Development|
|Contract finalization with manufacturer||2/1/2004||2/15/2004||$0||Devon||Business Development|
|First sales customer||2/15/2004||3/1/2004||$0||Devon||Sales|
|Establishment of first distributor||3/1/2004||5/1/2004||$0||Devon||Sales|
|Significant recurring distributor revenue||5/1/2004||5/30/2005||$0||Devon||Accounting|