BusinessPlanning for Vandal Resistant Door Entry System
Theneeds for security of premises are a primary driver for thedevelopment of better and secure door systems. Security is a constantneed for business, organizations and individuals who continuallyincrease in wealth that requires protection. This means that thedemand for more secure door systems will continually grow as thevalue of wealth generated increases. As a result, the VandalResistant Door Entry System (VRDES) was developed and the market forthe product is bright. The VRDES is a product developed by the DoorEntry Direct Ltd. The product is a solution for the stated securitydemands and will be the basis of this business plan for the company.
Thesize of the market is constantly growing as the economy of the worldeconomy grows. The population of London is currently at 8.4 millionpeople, which fives a good base market for thr residential areas(Sullivan, 2014). As individuals and companies establish newenterprises, the need for secure door systems is unlimited. Forinstance, in London alone, there are over 230 high profile tallbuildings with 20 more storey buildings being proposed. This is anindication of the growth in market size (Gurdian 2014). In lSince theeconomic environment is gradually improving after the recovery of theworld economy from the recession, the market is expanding. Therefore,the company will segment the market for the VRDES. The target marketsegments are the business communities and the wealthy individuals inthe society. The primary target market segment is the corporatecompanies that require security for their premises. The secondarytarget market of the VRDES is high earning customers who desire asecure solution for their private enterprises.
Thereare three main competitors for the VRDES product and the company. Oneof the competitors is the vandalresistant door entry andaccess door system by Entrotec Ltd. The SRS doorentry system isalso a competitor in the market. In addition, the vandalresistant system doors by the Videx Security Ltd. Other competitorsare foreign companies thatproduce high security door systems that are vandal resistant.
Asa result of the competition, the price will be sensitive to the levelof demand and the supply of the vandal resistant door systems. Theprice of the VRDESwill depend on the price set by the other players as a way ofbalancing the forces of demand and supply. However, the product is inthe high-end market, which makes it price inelastic to the changes inthe demand and supply. According to Mohan (2005), the higher theprice of the high-end market, the more the demand of the product.
Themost appropriate distribution for the VRDES is the existing retailstalls and wholesale channels. The company will partner with thepotential distributors and supply them with the product for sale.Through the use of the approved distributors, the company will alsogain in terms of promotion (Porter,1998). One of the promotionaltools for the VRDES Company is the use of conventional and new media.The promotion will involve marketing the VRDES through the mainstreammedia. These methods include the radio, the television and thenewspaper. According to Kotler andKeller (2012), modern businesses need toadopt the use of online platforms in their promotional function.Therefore, the company will use socialmedia as a regular tool for market promotion and marketing.
Themarket research for the VRDES is to be done in two main ways, the useof secondary data and primary data. The primary market research willcollect information from the original sources. Therefore, the firmhas identified a group of fifty potential customers to research from.The secondary research will see the company use media and documenteddata for marketing.
Themarket mix analysis for the VRDES will be based on the 4p Analysis onthe processed. The price for the products of the VRDES will be thesame for the two market segments. However, the price for thecorporate market will be slightly higher because of the added valueof privacy. The product will be the VRDES, designed for all types ofdoors and with all sizes. The place for the VRDES product will be thecompany headquarters. The company is located in London at TheAmc Business Park in Avenue Park Royal (Door Entry Direct, 2014).
Thepromotion will involve marketing the VRDES through the main streamtri-media of television, radio and newspaper. However, Kotlerand Keller (2012) argue that modernbusinesses should consider online and social media platforms as vitalpromotional tools. Therefore, the socialmedia will form the most frequent and regular platform of marketpromotion. The people are the customers as well as the suppliers. Thetwo target customers are the segmented into two markets. The companydevelops secure door systems and the VRDES will form part of thebrand for the company.
Themarket objective is to develop the best position by adoptinginnovative strategies to amerce new customers within the targetmarket. According to Hitt et al (2013), this will help the company toachieve another market objective of sustaining successful businessoperations. The other objective is to protect the lifestyle of allthe customers by protecting their premises though quality product.Finally, the company targets at establishing a team of qualifieddirect marketers who will approach direct customers and sell theproduct.
Topromote the VRDES, the company will use strong direct marketingexpertise through online and conventional means. This will involvedirect marketing strategies for reaching the customers directly fromthe company’s contacts (Aaker, 2006).To achieve this, the company needs to ensure that potential customersare approached by competent and well equipped marketers (Lamb &McDaniel, 2008). The use of direct marketers will allow the firm toannex the ability of controlling the promotion function by regulatingthe marketing staff of the VRDES. Through the adoption of the directmarketing strategy, the VRDES and the company will also have a chanceto customize the marketing message to specific target customers.
Theonline advertising and social media campaigns will also form part ofthe company’s promotional tools for the VRDES. This will reach theelite target market that is always online. According to Kenneth andTraver (2014) the use of social media and online messaging isgradually becoming a part of life of both people and organizations.In addition, the company will use direct mailing to reach the onlinemarkets that are not able to get online advertisements. Moreover, thecompany will carry out promotions in the trade fairs and exhibitionswhere the target market is present.
Inaddition, the company will use the services of well known advertisingagencies to run its marketing and promotional function. Theadvertising of the company will promote using the conventional media,namely the TV and the Newspapers. This is to connect with thecorporate market. The company will also use billboards that will beplaced at strategic locations for each market segment. This will be astrategy for countering the strategies of the competitors who alsouse the same media to promote the competing products (Porter,1998). In addition, thepromotional mediums will address the legal implications of theproduct, such as sale agreements. Moreover, the conventional mediawill help the firm to communicate the legal terms and conditions forthe use of the product.
Thecost of marketing VRDES is high because the product is new and thecompetition is high. As a result the firm has allocated a largepercentage of its marketing budget to cater for the costs ofmarketing the VRDES. The high costs will be to carry out the marketresearch and establish the market needs as well as the competitionfor the high security door systems (Amason, 2011). In addition, themarketing and promotional functions will be high because the productis relatively high and will need more awareness. The ease of reachingthe target market is high because the target customers are from thehigh income earners and corporate bodies. This aligns with theobjectives of the business plan for the company to acquire marketsand retain the existing clientele.
Tosolve the gradually increasing need for security products, the DoorEntry Direct Ltd has developed the Vandal Resistant Door Entry System(VRDES). The product will be launched in the global market and set tocompete with other products from the competing companies t5he marketobjective of the firm is to lead the market for the security doorsystems. Therefore, the company will implement strategies to enablethe marketing function of the firm to achieve its objectives. Thedoor system company will use direct marketing, conventional promotionand online media to target and reach customers. The firm will adoptstrategies that will adapt to the current conventional promotionalmethods so as to counter the competition from related companies.
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