Task: Continuing to build a marketing plan, this will focus on product and service.
Question 1: Discuss the type of product the company will offer and identify its primary characteristics.
Question 2: Discuss the service component of the product and how it will be used to enhance the product.
Question 3: Explain how the product could be expanded to a product line, and the depth and breadth of the line.
Question 4: Determine how the core business may change in response to industry or market changes.
Treasures of Time Background:
Company Description:
The company Treasures of Time is a unique organization in that it resells antique, retro, old, and unwanted furniture and household décor items, with a twist. The guiding rule for buying and selling pieces is how easily the pieces or items can be refreshed with a twist, or a new look. Even antiques are given a new look, whether with a coat of paint and a stenciled design or with the addition of decorative shell, mother of pearl, or some other unique embellishment. Though many buyers prefer antiques in their original state such pieces often sit in second hand or antique shops for years taking up space. The point of the business is to encourage buyers to consider older pieces of furniture given a new look or purpose, over buying new pieces. Not only do buyers save money, but they save pieces from eventually ending up in landfills. While some pieces are purchased from second hand and antique stores, others are collected as unwanted, but in good condition, items intended for the trash bin. Treasures of Time operates with a focus on reuse. For example, an old dresser in good condition, but with broken drawers, may be given a new coat of paint, have the drawer slides removed, and have painted or finished plywood shelves put in their place, to make a unique but attractive TV entertainment stand that will also hold DVD player, cable box, gaming system, and other accessories. An old bird wrought iron bird cage may be used as a base for an end table or coffee table, with a wood top added. Any supplies purchased, such a glue, wood, paint, or varnish, is stored and used for other projects as much as possible. The business also collects unused paint from opened jars or cans, as long as it is still usable. The point of the business is to help others add style to their homes on a limited budget, while considering the environment. Sustainability is incorporated into the aim of offering green products. Any new supplies purchased for re-purposing must come from organic or chemical free materials. The company researches any new supply companies before purchasing products to ensure products are not made using unfair labor practices. Anyone who wants to redecorate their home can without spending thousands of dollars. Many of the pieces get compliments from designers, homeowners, and collectors. The organization began with a $500 budget and has grown to a net worth of $15,000 in 6 months time, combining profits and inventory. It is expected that the business will continue to grow at the same rate and should attain a goal of $90,000 within 3 years. Though the company operates in the U.S. it does buy some odds and ends from foreign dealers and sellers.
Mission Statement:
It is the mission of Treasures of Time to promote greener and more sustainable living by turning unwanted and unused items into attractive, decorative pieces for the home, that anyone with a sense of design or style will appreciate, while showing consumers how they can give their home interiors (and outdoor living spaces) a new look on a limited budget.
Foreign Markets
While the organization sometimes purchases items from foreign suppliers or dealers, many countries have their own repurposing programs. Shipping items overseas is expensive and uses more fossil fuels than shipping to countries on the same continent. Therefore, the country the company has chosen to expand into is Canada. Toronto is less than 6 hours from the business. Items can be sold at outdoor markets in Toronto or sold in consignment shops. Eventually the company will select a business location and open a shop in the Toronto area. Items for repurposing can be attained in Canada in the same manner as items in the U.S., which will further reduce the use of fossil fuels for transport.
Canadians waste less that U.S. citizens, so consumers are likely to appreciate repurposed items rather than new ones. Landfills in Canada are nearing or are at maximum capacity. "Income and education have little impact on recycling behaviour; households with access to recycling programs tend to use them equally" (Babooram & Wang, 2008). This means that income is not a barrier in marketing products to consumers in Canada.
Marketing Plan
Potential Audiences
Market segments interested in repurposed household items can include all groups interested in re-use of household items to save money and/or to avoid contributing to landfill waste. Consumers in Canada need to stay focused on preventing excess landfill waste. They need to feel they are contributing to the solution rather than the problem, which occurs when new products are purchased and old ones are thrown away.
Marketing Segment and Target Market
Market segments are often divided and classified by characteristics. For promotion of Treasures of Time products and concept, behavioral and psychographic segmentation are necessary. Behavioral segmentation focuses on consumers segmented by benefit. In this instance, benefits of saving money and contributing to green consumer practices are the desired outcomes. Psychographic segmentation focuses on lifestyle (Goyat, 2011). Those who have adopted or who wish to adopt greener practices of reducing landfill waste can begin or may have already begun repurposing or reusing household items as a new way of life. Target markets for Treasures of Time products will include those with various demographic backgrounds. Those in the lower income brackets will be interested in decorating their homes interiors on a limited budget, as a source of pride in ownership or to express artistic style. Artistic style is a characteristic shared by those in other income brackets as well. Consumers in higher income brackets have fewer needs and more basic objectives of preventing landfill waste (Goyat, 2011). They are less budget conscious, but still have a need to contribute to positive solutions to society's problems.
SWOT Analysis
Strengths
Treasures of Time has established many repeat buyers and continues to grow its U.S. consumer base. In the process of expanding the business into Canada, the company can rely on its current customer base to contact the company with any finds they believe may be appealing, when visiting areas such as Toronto. The company may offer a discount to clients that discover potential sources of product for repurposing, based on size and potential. The company is expanding into a country that values reuse as a means of attaining a healthier environment and achieving sustainable goals.
Wider potential consumer markets with broad tastes in style encourage the organization to purchase items from many different eras in time, for a broader product offering that will appeal to individual styles and tastes of consumers. There are fewer restrictions in offering
goods in Canada, due to the North American Free Trade Agreement (NAFTA). The internet is available for the company to offer products to Canadian buyers. Pictures can be uploaded into catalogs for customers to view and order.
Weaknesses
The company does not have brand awareness in Canada. Expanding into areas such as Toronto requires members of the organization to gain a better understanding of the local flavor and tastes of consumers (Grueneberg, 2011). There is a steep learning curve and members of the organization must quickly develop an understanding of Canadian culture to understand how to market items and select the most desired items. Members of the organization must learn how to fill out customs forms properly or risk losing revenues for items not shipped in a timely manner, leading to dissatisfied customers.
Opportunities
Treasures of Time has an opportunity to expand its markets and increase revenues, with careful selection of market locations in Canada that maximize exposure to the products offered. The company has an opportunity to become a part of the solution for overfilled landfills in Canada, by highlighting how much waste has been diverted from U.S. landfills. Large and small items purchased that appeared as junk prior to repurposing can be photographed before and after the transformation, so that consumers can see the impact of landfill reduction. By expanding into Canada, the company has an opportunity to show further examples to potential U.S. customers, of how they can reduce landfill waste. Knowing what their Canadian neighbors are doing in terms of reducing waste can trigger a sense of pride and encouragement to consider repurposed product purchase. This will allow the organization to expand its promotions efforts in the U.S. When U.S. buyers realize consumers in other countries desire the products they are more likely to desire them as well.
Threats
Threats to Treasures in Time come from existing large corporate practices and from smaller antique or second hand shops. Though many small shops do not put their energies into repurposing or redesigning items consumers can purchase products at the same price as the company and can avoid paying the new retail price for reconditioned products. The threat is minimal as many consumers want to repurpose but lack the time, energy, and creativity. Large corporations wanting to develop new green strategies may purchase items from the business to show their business partners and visitors their commitment to green strategies. They may demand lower prices for products (Birol, 2010). Any business conducted with large corporations should avoid contracts or agreements for future purchase of items. Avoiding repetition in the items selected from other resources will help reduce the likelihood of bulk purchase and demand.
Market Position
Among the categories: Visionary, leader, niche player, challenger, where does the company fit it? Why?
How is the company targeting consumers? Low cost, unique (value added) products, volume
Analyzing the Market
5Cs, communication, cooperation, clarity, consistency, creativity. How does the expansion of the company related to these
STP segmentation, target markets, and positioning, already discussed, tie together
4Ps, price, product, place, promotion (marketing mix).
How are products priced? High to represent high quality, lower than retail store goods, or as value added (consider the repurpose/recondition process as adding value) if the pieces are unique.
Product- what does it represent to consumers
Promotion- How will products be marketed, what channels used
Place- where will products be promoted, ie: Ads, flyers, company website and catalog, open markets, etc.
Evaluate and target customer segments and positioning products within these segments.
As all products are different and unique, how will you target the low income segment versus the higher income segment?
References:
Babooram, A. & Wang, J. (2008). Recycling in Canada. Retrieved from
Birol, A. (2010). Three deadly threats against small business today. Small Business Trends.
Goyat, S. (2011). The basis of market segmentation: A critical review of literature. European Journal of Business Management, 3(9). ISSN 2222-2839 (Online).
Grueneberg, (2011). Planes, trains, and automobiles: How franchise companies build brand awareness with the travelling public.