Annual Marketing Plan for Glass to Go

Introduction

Glass to Go is a distributor of high quality retail glass products, including wine glasses, display vases and bowls, and unusually shaped jars and bottles. The business operates in the organisational reseller market (sells to other organisations, mainly retailers) and has been established for 12 years.

Glass to Go sources its products from overseas and New Zealand speciality glassware manufacturers known for their prowess in design. Over recent years, Glass to Go has had to adapt to a rapidly changing market. The chief changes have been the removal of import restrictions, the development of large retail organisations such as the Warehouse that source their own product lines from overseas, and competition from parallel importers.

Glass to Go's customers are therefore mainly speciality glassware or home-product/fashion retailers in upmarket shopping centres, who want to stock imported glassware that will appeal to discerning shoppers. In the last few years, Glass to Go has also sold display vases and bowls to florists who service corporate organisations with fresh flowers.

Situation Analysis

Market conditions for our product lines are favourable. The domestic retail economy has not been adversely affected by recent overseas events, and business confidence is growing and expected to continue to do so over the next six months. Consumer spending is also up on this time last year.

There has also been a proliferation of outlets selling quality glassware. Many of these, however, source their imported product lines themselves, particularly if they have multiple outlets. Glass to Go needs to identify those outlets that do not import their own products.

The main competition for our distribution agency comes from:

• other speciality and quality glass distributors, particularly those carrying exclusive distribution rights to imported European lines such as Millers, Crystalware, and Global Glass Importers Ltd
• retail department and quality home product stores that import their product direct, such as Smith and Caugheys, Kircaldie and Stains, Stevens, and the Homestore
• parallel importers of branded glassware.

The distributors' strengths are the exclusive brands they have the right to carry and, in the case of Global Glass Importers Ltd, their size, which enables them to purchase lines in discounted bulk. The retail department and home product stores' strengths lie in their ability to cut out the middle person (such as ourselves) and generate cost savings accordingly. Parallel importers can create price penetration situations and shift demand away from traditional retail outlets.

The weaknesses of our competitors are:

• Millers tend to import lower quality and cheaper product.
• Crystalware concentrate on cut crystal glassware.
• Global Glass Importers focus on the total range of glassware available, both in quality and use.
• Retail outlets' product lines are limited to two or three well-known brands only.
• Parallel importers' supply is erratic.

Glass to Go is starting to be squeezed by the amount of competition in the market. We need to develop marketing strategies that clearly differentiate us in the marketplace and that exploit our strengths and the competitors' weaknesses.

Target Markets

The current target markets for Glass to Go's product lines are:

1. speciality glassware and home fashion retail outlets without direct importing
2. florists providing corporate fresh flowers services that include display vases and bowls.

200X Goals and Objectives

Goal 1:	To increase sales of all our existing product lines through market penetration in our current target markets.
Objective:	To increase sales for the 12 months ending March 200X from current target markets by 15%.

Goal 2:	To increase sales in all our target markets by adding further high-end quality product lines to our range.
Objective:	To develop 10% of total sales for the 12 months ending March 200X from new product lines.

Goal 3:	To increase sales by developing new markets for our existing and anticipated new product lines.
Objective:	To develop 5% of total sales for the 12 months ending March 200X from new markets.

Strategies and Tactics

Our marketing strategy is to increase our sales through a mixture of market penetration of existing markets, extending our current markets, and introducing new high-end product speciality glass lines to our product range. Our tactics for each strategy are as follows:

Market Penetration Tactics

1. Redevelop our product line display folders to accurately reflect product brands and lines carried.
2. Create a summary brochure listing our product line brands (with example product photos for each brand) for mail-out to existing and prospective customers (see next set of tactics).
3. In conjunction with the mail-out of the summary brochure, include current brand promotional discounts on new and discontinued lines.
4. Follow up the mail-out with phone calls to each existing customer and prospect.

Market Extension Tactics

5. Identify new prospects within our existing target markets (for example, home fashion stores in New Zealand cities that we don't currently supply; florists who are offering corporates fresh flower services).
6. Identify new target markets and prospects within them who would buy or use our products but who we are not currently selling to (for example, top-end dinner party and corporate catering firms for wine glasses, display vases, and bowls).
7. Send prospects a tailored letter of introduction, including the summary product brand and line brochure.
8. Follow up mail-out with phone call and arrange to visit.

Additional Products Tactics

9. Research European and United States high-end home fashion and entertainment magazines, identify quality glassware product brands not yet carried in New Zealand, and select possible brands to add to product range.
10. Make contact with brands identified as possible additions and arrange to visit on this year's European buying trip.

Budget

Costs:		$
Tactic:
a.	Display folders redevelopment	500.00
b.	Summary brochure and mail-out to existing customers	2,000.00
c.	Brand promotional discounts	Nil1
d.	Phone calls	100.00
e.	Current markets - new prospect identification	Nil
f.	New markets - new prospect identification	250.002
g.	Mail-out to prospects	100.00
h.	Phone calls and visits3	100.00
i.	Magazine research	100.00
j.	Additional visits on European buying trip3	5,000.00
Total:		$8,150.00

Revenue

As forecast in the marketing goals and objectives:

1.	15% sales increase	15,000.00
2.	10% new sales through new product lines	10,000.00
3.	5% new sales to new markets	5,000.00
Total:		$30,000.00

¹ Discounts carried by brand firm.
² Purchase latest national business directory.
³ Sales reps to visit - already covered by base salaries.
⁴ Buying trip already budgeted for in travel budget.