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Quick Ammo Marketing PlanLisa CochranMGMT530 – Marketing StrategiesNick VogelSeptember 19, 2012Executive SummaryThe Quick Ammo is a company that designs and sells bottom-loading magazines for the Ruger 10/22 rifles. The company is currently waiting patent of the design of this newly, innovative magazine. Quick Ammo seeks to serve the rural and suburban areas in the northeastern U.S. looking to expand across the U.S. to all areas where hunting and recreational riflemen are located. Quick Ammo seeks to be the premier distributor of this new, state-of-the-art magazine, providing everyone who is interested in hunting and shooting an easier opportunity to do so. Since the company is just starting up and waiting on its patent, this marketing strategy is a must in order to set Quick Ammo up for success. This marketing plan outlines the marketing goals and objectives of this newly formed company and sets the foundation for implementation for the next year.Through the use of this marketing plan, Quick Ammo expects to make a name for itself in regional areas of the northeastern U.S. to eventually expand throughout the U.S. where avid hunters and riflemen and women reside. They hope to establish a solid beginning in terms of having the patent approved and selling bottom-loading magazines for the Ruger 10/22 rifle by the end of the year.Quick Ammo Mission StatementThe mission of Quick Ammo is to start out with designing and selling bottom–loading magazines for Ruger 10/22 rifles to larger retailers throughout the northeastern U.S., then expanding across the U.S., providing decreased load times and alleviating user discomfort.? The company seeks to cater to the audience who enjoys shooting rifles for hunting and recreational activities. All men, women, young and old, are welcome to use this bottom-loading magazine. It is our goal to provide a timely, easy way to load ammunition into the Ruger 10/22 magazine to allow users to get on with their sport, not wasting any time on struggling to push ammunition into magazines prior to being able to shoot the rifle. With the bottom-loading ammunition magazine designed by Quick Ammo, it gives this opportunity.Situation AnalysisInternal EnvironmentMarketing Goals and Objectives. The marketing goals and objectives are to:Have patent approved by patent office for the bottom-loading magazines for Ruger 10/22 riflesOnce approved, form contracts with ammunition and rifle retailers to design and manufacture the bottom-loading rifles for the Ruger 10/22 rifle at first, then expand to make bottom-loading magazines for other rifles as wellSell in the northeastern U.S. for first year, then broaden scope to expand throughout the U.S.Current Marketing Strategy and Performance. The current marketing strategy of Quick Ammo since it has been formed in October of 2010, while waiting on the patent approval, is advertising by brochures, emails, and telephone calls to retailers in the northeastern U.S. for hunting and outdoor recreational businesses to make them aware of what product Quick Ammo has to offer. Since the design in 2010 of the bottom-loading magazine, many retailers have shown keen interest in the product and have asked for more information and would be potential retailers once the company started manufacturing the product. Social Networking sites have discussed this new product as well due to the brochures and emails that were distributed to the different retailers throughout that region. “The marketing mix has direct relationship with performance of business. Therefore, managements of business are encouraged to pursue the use of marketing mix elements with rigor, so that their business can achieve a sustainable competitive advantage” (Aremu & Bamiduro, 2012). The four P’s of this marketing mix are as follows:Product. The product is a fully self-sustained ammunition cartridge that allows for bottom-loading ammunition that eliminates the discomfort to the user when loading and reloading. It also eliminates the steep learning curve that comes along with competition of the products in the current market.Placement. The placement of this product would be in hunting and outdoor-recreational retailers in the northeastern U.S. as well as available through Internet sales from a website Quick Ammo will build once the patent is approved and the company is operational. The product will also be offered at gun trade shows around the U.S. Finally, Quick Ammo will target new and old Ruger 10/22 rifle owners to purchase these efficient magazines for their rifle. The placement of this product in the correct market for advertisement and sales will be where the correct demographic lies, which is currently the most abundant in the northeastern U.S. Price. The price will remain fairly competitive with the current market product, but with the added features of ease of use and convenience, there will be a 5% mark up to the cost. Pricing will be slightly more expensive than what regular magazines cost because of the features it provides. Promotion. There are few avenues that the product will be promoted. YouTube videos will demonstrate its ease of use and quick loading times. Show booths at gun trade shows nationwide will allow future customers the opportunity to have hands-on familiarity with the features it provides, and finally, social media will be the other means of promotion, through online hunting and outdoor recreational website advertisements. The product will be communicated through advertisements to vendors looking to bring this new product into their store as well as online.The Four P’s Explained. There are several areas of this strategy that are working well. The new product idea is in the company’s favor. Also, the demographics for which this product is wanted is in Quick Ammo’s favor also. The downfalls are that once the product is manufactured and sold, competition is inevitable. This is when the product line will have to expand horizontally and start designing more bottom-loading magazines for other rifles as well. Pricing competitively in the future when other companies come online with manufacturing and distributing bottom-loading rifle magazines will be something to consider also. With this being a brand new product, the sales volume is forecasted to be impressive for the first six months of distribution. Advertising and placement will become vital after the first six months to keep the sales volume high. The estimated bottom-loading magazine can be designed and sold for over 18,000 Ruger 10/22 rifles that were purchased last year, when estimating 4-5 magazines per gun, 1M magazines manufactured at $28 per magazine, which equates to approximately 80% overhead.Current and Anticipated Organizational Resources. Quick Ammo currently has $50,000 for startup costs for when the patent is approved. Two potential distributors and retailers, Cabela, and Remington have tentatively agreed to support the manufacturing and other start up costs if the company agrees to only sell through them for the first year and after the first year, if successful, will expand to designing more bottom-loading rifle magazines. The team consists for three individuals, a businessman, a mechanical engineer, and a marketing director. As long as we continue to provide the quality of product our distributors are expecting from us, the relationship with the financers for our product will continue to be worthwhile. Our team will continue to hire on as the company expands and meets the needs of our customers, distributors, and retailers. When having to become more pricing competitive in the future, there are ways to cut costs without cutting back on quality, which Quick Ammo is prepared to do when that occurs.Current and Anticipated Cultural and Structural Issues. There are a few different positive and negative aspects of the current and anticipated cultural and structural issues that Quick Ammo is prepared to deal with. The first issue is with the 2nd Amendment with the Right to Bear Arms. This is a very controversial issue, which is why the marketing and distributing efforts are starting out on the northeastern U.S. where gun control is more lenient. There are fewer activist groups against guns and the 2nd Amendment in the south than anywhere else in the country, which is one of the many reasons Quick Ammo chose this region. Quick Ammo does plan on extending the short-term planning to a more long-term plan once the patent is approved and the product proves to be a success, which will be continually assessed. Quick Ammo is willing to broaden its scope to design more products for rifles, which will begin with making more than just one bottom-loading rifle magazine after it is successful. Our mechanical engineer is already designing those magazines, with the intent to introduce to vendors after the kickoff of the original bottom-loading Ruger 10/22 rifle magazine hopefully by January 2013. There are no internal politics or power struggles at this time within the company, as it is a startup firm. The marketing position is vital now as well as in the future. Since this product is just being introduced the marketing has to sell and convince the distributors and retailers that this is a product they want now and will continue to want in the future. The three owners of this company will continue to have equal co-ownership of the company, with the CEO being the designer and mechanical engineer. Once approved for manufacturing and distribution, Quick Ammo will have to hire a manufacturing team by contracting them out. This will be fronted through start up loans as well as through agreements for funding through the co-signers for the manufacturing of the product, the key retailers.The Customer EnvironmentWho are Quick Ammo's current and/or potential customers? Recreational and sport gun owners and enthusiasts, females and younger generation for ease use, and distributors.Demographics. Due to the ease of use and the decreased learning curve of loading this magazine, anyone able to use a gun can load this magazine. There are several different identifying factors for Quick Ammo’s potential customers, which are important to note, because this will be key in targeting our market audience. Men of all ages, women of all ages, and the wealthy, who enjoy hunting and shooting rifles will be the primary target audience in the northeastern U.S. (National Shooting Sports Foundation, 2011)Psychographics. The conservative population that agrees with the values of the 2nd amendment will be who we target as well. This is especially true with the northeastern states. People who are afraid of guns may feel more comfortable and confident with such ease of use of the magazine, which in turn, will allow us to open up that marketing avenue also.What do customers do with the Quick Ammo's products? Customers will use Quick Ammo’s bottom-loading magazines to ease the use of loading and reloading magazines. They will also use it to save time and energy. The retailers will purchase the magazines in bulk and they can be sold as either individually or bulk online and at gun shows as well. They will also be sold with the rifle as an added option/feature. After the magazines are used for the first time, they can be reused multiple times. Once they want to dispose of the reloadable magazine, Quick Ammo will offer online on their website a recycle offer to allow a discount on their next purchase of bottom-loading magazinesWhere do customers purchase the Quick Ammo's products? The potential customers of Quick Ammo’s bottom-loading magazines can buy this magazine with the rifle, from retailers separately from the rifle, online, and on at gun shows. When do customers purchase the Quick Ammo's products? Most of the sales are projected to be as an added feature to the rifle’s original purchase as well as online. Promotions with various offers will entire the majority of shooters and hunters. The market that will not fall into wanting a promotion is the femail population and the wealthy, looking specifically for the comfort and ease of use. The seasons will influence purchase behavior also for hunters, especially when you can only use this type a rifle during certain times of the year. Why (and how) do customers select the Quick Ammo's products? The bottom-loading magazine will be purchased by choosing to save time and energy over the traditional way of loading a magazine.Why do potential customers not purchase the Quick Ammo's products? There will be certain potential customers that choose not to buy this magazine. The majority of these customers will be men who choose not take the easy way out and feel that it takes away from the purpose of the entire shooting and hunting experience. Another potential customer that will choose not to buy this bottom-loading magazine are the customers who are not willing to pay the extra money for this added feature. For these customers who choose not to purchase, different tactics will be used to still target them by offering them promotions to entice them or allowing them to try it out for free then if they don’t like it they can return it in 30 days for no additional charge. Who are the Quick Ammo Current and Potential Customers? The customer base can be broken down into three main categories: Recreational and sport gun owners and enthusiasts, its and younger generation for ease use, and distributorsThe External EnvironmentCompetition. The competition for Quick Ammo will be the following companies: Remmingtion, Cabela, Butler Creek, other magazine manufacturers and retailers, potential laws being passed to not allow private ownership of guns would cripple business (indirect competition).The total budget that was offered to provide funding to include the business start up loans, is $500,000. For over 18,000 Ruger 10/22 rifles purchased last year, Quick Ammo is estimating 4-5 magazines per gun (1M @ $28/mag, est 80% overhead). As the company projects to expand to other rifles for bottom-loading magazine this number will increase each year as the company’s product line increases.The major strengths of the competition is their size and positioning in this industry already. Quick Ammo is trying to not only break ground in the industry, but also introduce a new product all together. One weakness they all have is that they do not sell or have access to this new product of bottom-loading rifle magazines.Economic Growth and Stability. The economic growth for this product will be dependent on the region. The northeastern states hunt to make a living and for recreational purposes shoot rifles the most, so economy shouldn’t have that large of an effect on selling this product.Political Trends. The political trends that evolve around firearms in general and the right to bear arms. Depending on the state in which the bottom-loading magazine is being sold, there could be laws against owning rifles. Legal and Regulatory Issues. In any state, in order to purchase a firearm, an individual must be at least 18 years of age. There is a 10-day waiting period after purchasing rifles that could influence the immediate purchase of the bottom-loading rifles with initial sales of rifles. Technological Advancements. With technological advances, this could be a factor once the product hits the shelves and other companies begin to try to replicate the bottom-loading magazine feature. If the company is unable to keep up, selling the patent may be the only course of action to keep the company out of the red.Sociocultural Trends. With the target audiences their purpose for purchasing these bottom-loading magazines is to increase their ability to enjoy the hobby of hunting or shooting rifles that much more. As people’s schedules get more and more busy, the demand for ease of use and timely will increase. People will pay for time and convenience. SWOT AnalysisThis marketing plan has the many different strengths and weaknesses, opportunities and threats (SWOT) that all new ideas and strategies have. Through using the SWOT Matrix, it can help develop the marketing plan and allows for the marketing team to transition their focus to more of an implementation of strategy (Ferrell & Hartline, 2011, p. 131). The SWOT Matrix?SWOT AnalysisStrengthHunting is an outdoor sport that has been around for years.There is the ease of use.This magazine saves time. This magazine saves energy.WeaknessCurrently only made for one rifle.Patent hasn’t gone through yet.Must find manufacturer to make it.OpportunityOnce patent approved, bottom loading magazines can be made for different rifles.Convenience is the next generation.Once developed, expanding to other regions and markets is next.?The Quick Ammo could become a U.S. name in a few years if the design, manufacturing, and marketing personnel follow the strategic plan accordingly.The Quick Ammo can generate funds for the start up costs through getting retailers to front costs for a portion of the profit.ThreatOther developers come up to speed and start making it also.Other developers come up to speed and start making it for different rifles as well.Some people make enjoy loading a magazine the original way.The sport of hunting and shooting is appealing to both the young and old. With a bottom-loading magazine it makes (and the fitness and fun factors) we may not have a problem recruiting team members. Quick Ammo may not make it based off this idea and would have to start from scratch if this idea didn’t become a success.Developing Competitive AdvantagesThere are several ways that Quick Ammo has developed a competitive advantage. The first advantage being that there aren’t any other bottom-loading rifle magazines. The next advantage being that there is room for growth into more bottom-loading magazines for other rifles. The other strategic advantage that Quick Ammo has over its competition is that it is patenting the product. Quick Ammo can change the weaknesses into strengths with the right amount of funding and with the product patented, retailers may be willing to front the cost to increase manufacturing and design for partial profit. When the magazine is sold there will be disclaimers with the product protecting Quick Ammo and the distributors and retailers from lawsuits.Developing Strategic FocusThe overall strategic focus is to provide an ease of use and convenient way to load a magazine for rifles. This focus does allow for company product expansion and competition with other companies in this industry. This focus allows for Quick Ammo to penetrate the market and diversifies the company from others by offering a product that no other company can offer at this time.Marketing Goals and ObjectivesThe primary goal is to obtain a patent for full protection. Once the patent is received our product will be marketed in attempts to solicit potential investors for manufacturing. The best possible outcome would be that a large Quick Ammo will agree to manufacture and sell our product under a license. Marketing Goal 1Obtain patent for full protection.Objective 1. Once obtained, the company can start making contracts with other companies to manufacture, distribute, and sell product Through Cabela’s, Remmington, Dicks Sporting Goods, and REI by January, 2013.Marketing Goal 2To expand outside the northeastern U.S. to across the entire country.Objective 2. Once a success for the northeastern U.S. expand to other regions throughout the U.S. that cater to hunting and shooting for sport and recreation by January 2014 (one year later)Marketing StrategyThe goal of getting the patent and making the magazine a success will happen through proper advertising methods and if more come online in the future having a very competitive price will be key. Advertisement on its ease of use and user-friendly feature as well as a time-saving addition. “To be effective at implementing marketing strategies, senior marketing executives need to clearly articulate the context of the marketing strategy and develop hierarchical structures that foster a facilitative environment for marketing strategy implementation and encourage mid-level marketing managers to think strategically” (Thorpe & Morgan, 2007).Primary Target MarketThe primary target market will be customers Quick Ammo desire to form long-term customer relationships with through developing the product reputation for men and women, old and young, starting in the northeastern U.S. then expanding across the U.S. a year later.Product StrategyThe brand name for this Ruger 10/22 rifle bottom-loading magazine will called Betty. All the magazines will be a female name that are designed in the future. The logo design will be the magazine that is in the watermark of this marketing plan. When packaged, all material the magazines are packaged in will be made of recycled materials to fulfill the social responsibility of the company. The major features is the convenience and the ease of use. The value will be great for what the product provides and in comparison to the competition of manual-loading magazines.Pricing StrategyThe magazine will sell for on average, $28 per magazine, which is $3 more than the average cost of a regular magazine that doesn’t provide the added benefits of Quick Ammo’s product. People will be willing to pay more for convenience and added comfort that this product offers.Distribution/Supply Chain StrategyThe supply chain strategy will start regionally through distributors that are already used by the retailers we will be selling to and the online purchases will sell directly from the manufacturer. This product makes Quick Ammo different from other magazine manufacturers which is the advantage Quick Ammo has over the competition. The convenience and comfort will attract customers to this product the more and more they use it. There will be a 100% money back guarantee for this product within the first 30 days of purchase.Integrated Marketing Communication StrategyThere are several avenues that Quick Ammo, along with the retailers, will take to promote this new, ground-breaking product. Brochures, banners, posters, commercials on YouTube, pop-up ads online through the different retailers’ sites, gun trade shows, retailers, and word of mouth will be the primary methods for promoting.Marketing Implementation“A marketing plan states what will be done, who will do it, when they will do it, why it will be done, how it will be done, and how much it will cost in terms of budget, staff, technology and facilities. It may even state where it will be done” (Gerson, 1998).Structural IssuesThere is currently organizational structure in place but the positions have not been filled due to the pending patent. Once the patent is approved, the roles and responsibilities can be evaluated and adjustments can be made as necessary. Quick Ammo would like to fill all executive and management positions with employees who are familiar with rifles and ammunition, so their ideas and knowledge can contribute to the future planning and strategies that are implemented with Quick Ammo. Quick Ammo will be very flexible to change as needed to improve the success of the company as whole. If the current marketing plan doesn’t work, Quick Ammo will modify it as necessary.Tactical Marketing Activities Specific Tactical ActivitiesPerson/DepartmentResponsibleRequiredBudgetCompletionDateProduct Activities1.Recruit retail partners2.Develop posters/advertisements to distribute3.Acquire funding for startup fundsMarketing$20,000November 30, 2012Pricing Activities1.Determine exact price per magazine2.Determine distributors3. Determine merchandise pricingMarketing$0December 31, 2012Distribution/Supply Chain Activities1.Acquire materials to manufacture2.Create account3.Create merchandise on Sales$300,000December 31, 2012IMC (Promotion) Activities1.Contact news2.Contact potential future investors3.Create webpages and online siteSales$0January 31, 2013Evaluation and ControlFormal ControlsEvaluation of success will be continuous, as financial and CSR goals will be set and ways to achieve these goals will be implemented. Quarterly re-evaluation of progress will be done to redirect if necessary. Hiring more workers will come with product demand from distributors and rmal Controls and AuditsIn order for the Quick Ammo to be successful the customers must be satisfied with the product. Surveys will be provided with each purchase and will be sent to the customer after purchase to ensure 100% satisfaction. Marketing activities will be monitored through this method as well by asking for suggestions and improvements. ReferencesAremu, M.A., & Bamiduro, J.A. (Jan 2012). Marketing mix practice as a determinant of entrepreneurial business performance. Journal of business and management 7.1 (Jan 2012): 205-213. Retrieved September 14, 2012, from O.C. & Hartline M. (2011). Marketing Strategy (5th ed.). Ohio: South-Western College Publishing.Gerson, V. (1998). Arming yourself with a marketing plan. Bank marketing, 30(9), 38-44. Retrieved from Shooting Sports Foundation (2011). A portrait of the hunters and hunting license trends: national report. Retrieved on September 10, 2012, from , E.R., & Morgan, R.E. (2007). In pursuit of the “ideal approach” to successful marketing strategy implementation. European journal of marketing41. 5/6 (2007): 659-677. RetrievedSeptember 10, 2012, from ................
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