Elsewares Promotional Products & Packaging
Strategy and Implementation Summary
Our marketing strategy is to get our foot in the distributor’s door by offering them drawstring pouches as packaging products to add to the perceived value and profit on the promotional products they have already sold. Once we have established a business relationship and they have had a positive customer service experience with our company, we intend to offer them products in addition to the packaging items.
5.1 Marketing Strategy
We intend to focus on Midwest and West Coast distributors who have had to look to the East Coast as the only source of supply for their bag needs. Along with our on-time shipping commitment, we will focus on the quality and durability of our imprinting process, guaranteeing their quality so that distributors can ensure their clients that their message will be around for a while.
5.1.1 Promotion Strategy
All advertising will be disseminated through ASI publications. This will pinpoint the only market that we are attempting to reach, ASI listed distributors. We must market the product successfully to the distributor so that it is appealing enough for him to turn around and market it to the end user.
5.1.2 Distribution Strategy
Elsewares will sell its products exclusively through ASI listed distributors. Because many specialty advertising distributors are wary of doing business with suppliers whom they believe to be “dealing direct”, all direct inquiries will be directed to a distributor with whom we already have a business relationship. Distributors invest a significant portion of their selling time to finding, screening and qualifying specialty advertising buyers and convincing them that the suppliers products have a place and purpose in their activities, and are consequently predisposed to avoid doing business with suppliers who compete with them.
5.1.3 Service and Support
Offering the highest level of customer service to our distributor network will be crucial to Elsewares’ long-term success. Logo imprints will have to be of the highest quality and product shipping deadlines must be met. Because products will always be bought for a specific event or promotion, it will be important to support the distributors in resolving any legitimate conflicts between them and the end user.
5.1.4 Marketing Programs
Our main marketing program will revolve around the placement of our full line, full color catalog and price list in The Counselor which is the industry’s leading trade magazine of news, new products and market trends. This magazine is mailed to the over 13,0000 advertising specialty distributors listed with ASI. Reprints, with additional information about our company, will be mailed out approximately two weeks later to these same distributors as well as our own sales reps, offering samples of both our products and imprinting capabilities.
Secondly, the same catalog will be placed in the next annual edition of Media File which is a compilation of full page ads of participating suppliers. This catalog is sent to the ASI distributors who in turn give it to their sales people to use when offering various products to the end user. In some cases, distributors also give these catalogs to buyers who do a large volume of business with them.
Thirdly, as Elsewares brings new products into their line before the next annual catalog is printed and distributed, we will introduce these products to the advertising specialty industry through postcards featuring the product on one side and our mailing address on the other. These cards are bundled with other supplier cards for mailing and then bound into The Counselor magazine about six weeks later.
Elsewares will also only hire industry experienced sales reps of the highest caliber. In many cases, they will be the only representatives to call on distributors in person and will subsequently leave a lasting impression of our company. They will not be expected to close sales, but will be expected to represent our products in a competitive atmosphere. Their loyalty will be courted and rewarded through a compensation package combining both a salary and commission.
5.1.5 Pricing Strategy
In the fifty years of business experience that we have accumulated, one message rings true: someone can always beat you on price. Therefore, our pricing strategy is to be competitive within the various product categories, but not to rely on the selling price to overshadow the other advantages of doing business with our company. We will sell ourselves on the basis of a quality-made, unique product line which is reasonably priced and backed by an extraordinary customer service department. The products will be checked prior to shipment and all promised shipping deadlines will be met.
5.2 Sales Strategy
Because Elsewares is a new entity, we understand that we will have to prove our company’s worth to distributors in order to earn their respect and business. Elsewares will promptly honor all dealer requests for product and imprinting samples. We will offer a toll-free 800 number phone line and have a full-time, dedicated customer service person to meet distributors’ needs.
While the network of sales reps is bringing our product line to the attention of the ASI listed distributors, our in-house sales department will be calling on some of the larger West Coast distributors. We have hired a consultant who has had ongoing business relationships with many of these distributors over the last 24 years and we are counting on him to help us meet our sales objectives right from the start.
|Year 1||Year 2||Year 3|
|Velour Drawstring Pouch||479,000||574,800||689,760|
|Leather Drawstring Pouch||216,000||259,200||311,040|
|Round Bottom Pouch||75,000||90,000||108,000|
|Pen/Mug & Eyeglass Bag||60,000||72,000||86,400|
|Metal Lip Eyeglass Bag||25,000||30,000||36,000|
|Assorted Jewelry Rolls||22,500||27,000||32,400|
|Total Unit Sales||1,802,995||2,163,618||2,596,342|
|Unit Prices||Year 1||Year 2||Year 3|
|Velour Drawstring Pouch||$0.22||$0.24||$0.27|
|Leather Drawstring Pouch||$0.36||$0.40||$0.44|
|Round Bottom Pouch||$0.80||$0.84||$0.88|
|Pen/Mug & Eyeglass Bag||$0.54||$0.59||$0.65|
|Metal Lip Eyeglass Bag||$0.60||$0.66||$0.73|
|Assorted Jewelry Rolls||$5.00||$5.50||$6.05|
|Velour Drawstring Pouch||$105,380||$137,952||$186,235|
|Leather Drawstring Pouch||$77,760||$103,680||$136,858|
|Round Bottom Pouch||$60,000||$75,600||$95,040|
|Pen/Mug & Eyeglass Bag||$32,400||$42,480||$56,160|
|Metal Lip Eyeglass Bag||$15,000||$19,800||$26,280|
|Assorted Jewelry Rolls||$112,500||$148,500||$196,020|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Velour Drawstring Pouch||$0.11||$0.12||$0.12|
|Leather Drawstring Pouch||$0.18||$0.19||$0.20|
|Round Bottom Pouch||$0.40||$0.42||$0.44|
|Pen/Mug & Eyeglass Bag||$0.27||$0.28||$0.30|
|Metal Lip Eyeglass Bag||$0.30||$0.32||$0.33|
|Assorted Jewelry Rolls||$2.50||$2.63||$2.76|
|Direct Cost of Sales|
|Velour Drawstring Pouch||$52,690||$68,976||$82,771|
|Leather Drawstring Pouch||$38,880||$49,248||$62,208|
|Round Bottom Pouch||$30,000||$37,800||$47,520|
|Pen/Mug & Eyeglass Bag||$16,200||$20,160||$25,920|
|Metal Lip Eyeglass Bag||$7,500||$9,600||$11,880|
|Assorted Jewelry Rolls||$56,250||$71,010||$89,424|
|Subtotal Direct Cost of Sales||$282,283||$355,373||$452,320|
5.3 Strategic Alliances
The performance of Elsewares will be indelibly linked to the performance of the distributors that purchase our product. It is therefore paramount to the fulfillment of our business objectives that we cultivate customer loyalty with a network of distributors that are both credit worthy and active in selling the types of products we offer. The Advertising Specialty Institute offers suppliers a subscription to a market and credit service that will help us to pinpoint our marketing effort along those lines.
Sample Milestones topic text.
The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Finish Business Plan||5/7/2009||6/6/2009||$100||Dude||Boss|
|Ah HA! Event||5/27/2009||6/1/2009||$60||Marianne||Bosses|
|Ah Merde Alors! Event||6/26/2009||7/1/2009||$250||Marionette||Bouc émissaire|
|Marketing Program Starts||6/6/2009||7/1/2009||$1,000||Glower||Marketeers|
|Plan vs. Actual Review||11/1/2009||11/8/2009||$0||Galore||Alles|
|First Break-even Month||3/5/2010||4/4/2010||$0||Bouys||Salers|
|Upgrade Business Plan Pro||4/22/2010||4/24/2010||$100||Brass||Bossies|