- SITUATION ANALYSIS:
- Company Analysis:
- Customer Analysis:
- Industry Analysis:
- Competitive Analysis:
- Environmental trends:
- Economic environment:
- Political and regulatory environment:
- Social and cultural factors:
- Key publics:
- SWOT Table:
- Major threats:
- Potential threats:
- Minor threats:
- Segmentation, Target Markets, Growth Strategy and Value Proposition:
- Market segmentation:
- Target market(s):
- Market-product grid and growth strategy:
- Value Proposition:
- Positioning Strategy:
- Set Market and Product Goals:
- MARKETING MIX:
- Channels of Distribution:
- Integrated Marketing Communications:
- Budget and Financials:
- IMPLEMENTATION PLAN:
- RISKS & THREATS:
The purpose of this marketing plan is to inform Professor Heisley about how Kasbee Profit Strategies can strengthen its current relationships of its clients, as well as to establishing its presence as a trustworthy business consulting firm in the community of Woodland hills and the greater San Fernando Valley. By targeting a specific geographic area and developing a strong web presence, KPS will be able to build and maintain a competitive position in the marketing industry.
The following report explains in detail with visual support, specific strategies and explanations intended to enhance the growth and prosperity of both Kasbee Profit Strategies and its clientele. This report serves to highlight the core values, target markets, growth strategies, and market limitations of Kasbee Profit Strategies and the market in which it conducts business.
II. SITUATION ANALYSIS:
The current business Kasbee Profit Strategy is involved with is management consulting with an emphasis on marketing. The situation analysis deals with three key components which is company, customer, and industry analysis.
A. Company Analysis:
Kasbee Profit Strategies (KPS) is a company devoted to helping local businesses reach their full potential. A main value of KPS is to support its clients so that they can create sustainable business that will provide great jobs. KPS wants to build up its clients’ services and products, which in turn will add value to the communities and people they serve. The mission statement of Kasbee Profit Strategies as stated in the powerpoint declares the company’s goal to enhance both its clients and its own profitability by providing marketing consulting services and maintaining strong personal relationships. KPS’s cultural norms are far from traditional. The company is a management firm who caters to both Health Care companies as well as real estate but is not limited to just that. KPS started in 2008 and has been helping its clients grow since then with effective tactics used to help each client reach financial excellence. KPS offers a wide range of consulting services including (but not limited to) clarifying job positions and their goals, networking, establishing contracts, and implementing core values into the company’s day-to-day activities. KPS’ customers include AmbuMed, a private company run by front line paramedics. Dave Beren’s Real Estate, a family-owned and operated home buying and selling company that specializes in working with clients who don’t want to sell in the traditional way. Beren’s Real Estate created a system for following up existing leads on a routine basis. By developing credibility after time homeowners became willing to discuss selling to him, as stated in the power point. Located in the San Fernando Valley, KPS is strategically and demographically placed in the metropolitan area of Los Angeles home to over 1.8 million people.
KPS doesn’t market itself by advertising its services. No flyers, or posters will be posted around town and very little use of the Internet is utilized, instead KPS markets through different referral networks. KPS uses the power of word of mouth to endorse the quality of the services provided. Although individually run, Kasbee Profit Strategies fully dedicates itself, maintains a strong history of increasing profits, and sustains memorable professional relationships with its clients. KPS’ small size allows the overall operating costs to be relatively low, however on the contrary can currently appear unattractive to prospective clients for its lack of web presence and non-traditional operational methods. KPS’s pricing is on a project basis. For a 30 day project the price might be $1800/mo. In which the KPS would receive 50% up front and 50% upon presenting deliverables. Currently KPS is providing 25 hours of service for week at $25 an hour. The most KPS has ever charged was $60 an hour for a small project that took about 8.5 hours to complete. KPS’ Strengths- as stated in the SWOT Analysis- are ……
B. Customer Analysis:
The current core customer base for the company are small businesses based in the San Fernando Valley of Los Angeles, California, or that have independent offices located there. It is possible for potential regional expansion as the company grows, however considering the marketing transition KPS faces, establishing a dominating position in the current area of business – the San Fernando Valley, is the most crucial. The San Fernando Valley provides many industries in which KPS can penetrate through, as it is one of the nation’s largest cities. Furthermore, the US Census Bureau’s notation that the San Fernando Valley houses more than ten million individuals and more than one million business firms (according to the latest census data) supports KPS’ current practice of relying on word of mouth to spread knowledge of her services (U.S. Census Bureau). The San Fernando Valley represents a non-trivial portion of that population and number of businesses. The Cal-State Northridge San Fernando Valley Economic Research Center puts the population at over 1.8 million, with more than 48,000 business establishments.
The focus of the consulting firmwill be in the areas of management and marketing. KPS serves to provide opportunities for its clientele that will allow it to connect with potential new customers . That may have been overlooked in the past. This business-building function has direct revenue benefits to its clients. In addition, its clients will have needs for coaching and guidance on social media, electronic communication, and blogging, as they will likely not have a writer or social media marketer on staff. These are specialized, labor-intensive functions that will not be the main focus of clients. Therefore, KPS can make itself indispensable. In addition, KPS can bring its expertise to bare in alliance creation, marketing and advertising, promotion, and both business-to-customer and business-to-business sales. KPS strives to be the supporting block that sets the basic foundations for many businesses at once. By working diligently to maintain its values… , KPS sets itself and its customers in strong positions for increasing business efficiency, productivity, and profitability.
C. Industry Analysis:
Kasbee Profit Strategies is a management consulting firm with an emphasis on marketing. KPS develops specific marketing plans and creates strategic processes aimed to help raise funding, profits, and efficiency of companies such as AmbuMed Ambulance’s, Beren’s real estate, and Safe Passage. Although there are other companies in the area that offer similar services, Kasbee Profit Strategies offers a competitive advantage over its competitors by offering a very comfortable and memorable personal relationship for its clients. The competitive analysis and analysis of environmental trends will discuss these services on a broader scale.
1. Competitive Analysis:
One of the major competitor Kasbee Profit Strategy is unaware of is L.E.K. Consulting. L.E.K. Consulting is a multi-national strategic consulting firm conducting business in America, Europe, and Asia-Pacific. L.E.K Consulting’s mission statement is as follows “world-class and rigorous analysis, deep knowledge of their industries, and pragmatic solutions to produce practical, high-impact results – quickly” (L.E.K Consulting). Analyzing the company’s mission statement allows prospective businesses to gain confidence in using L.E.K. Consultants services. Consulting culture focuses on a “dynamic work environment, with its emphasis on teamwork, flexibility ,creative thinking, and reflects the traits they value” (L.E.K. Consulting). L.E.K. Consulting has 30 years of experience and offer: Strategy, Mergers & Acquisitions, Operations and Marketing & Sales services. A strategy L.E.K. Consulting uses to consult other businesses is by providing “insight that help their clients achieve exceptional results, and our heritage in shareholder value management is an asset to our clients’ ability to build value” (L.E.K. Consulting). Their customers are to advise organizations and senior executives to identify and exploit new opportunities for the industry they work for. Benefits L.E.K. Consulting provides to all of the industries they are involved in is practices, case studies, service projects, and insight. When a customer is interested in using their services they can fill out “Discuss Your Needs” portion to figure out exactly how they can help them (L.E.K. Consulting). Their strengths is in their organization or services being offered to each industry, large number of employees, works with international businesses, and having 30 years of experience. Their weaknesses within this company is the lack of personal connection within a community, not displaying the price they charge for their services, and may discourage start up companies to use their services.
Another major competitor who Kasbee Profit Strategy is aware of is Growthink. Growthink helps entrepreneurs how to successfully start up, grow, and exist out of their own company. Their mission statement is “help all entrepreneurs succeed so they can create jobs, grow economies, offer customers better products and services, realize great personal satisfaction and wealth, and fund programs that make the world a better place” (Growthink). Growthink has three main core values which is integrity, courage, and positivity. Growthink has 15 years of experience and offers: “Business Plan Writing & Consulting , Exit Strategy Planning, and Market, Industry & Competitive Research” (Growthink). A strategy Growthink uses is making a promise to their client to honor their journey, deliver quality work efficiently, and be a strategic team (Growthink). Their clients are “entrepreneurs working at startups, small businesses, venture capital and private equity firms, non-profit and governmental organizations, middle market companies, and Fortune 500 firms” (Growthink). Benefits Growthink provides to all of their clients is developing business plans, create dashboards, strategies, and executing on exit plans. Growthink communicates their values to their clients through their main website, Los Angeles office, or through email / newsletter. Growthink strengths are offering a variety of services, ease-of-contact, and having 15 years of experience; however, their weaknesses are not displaying price of their services and is mainly focusing on entrepreneurs.
The last major competitor of Kasbee Profit Strategy would be LA Business Connect. LA Business Connect helps entrepreneur and small business service company. Their mission statement is “to establish long-term business partnerships with Los Angeles County based entrepreneurs, micro-enterprises, and small business owners; through quality service delivery, exceptional customer service, at a competitive price” (LA Business Connect). LA Business Connect main values is to have smart goals and be cost effective. A strategy LA Business Connect uses customer support, experienced staff, and expert advising for the LA county. Their clients are entrepreneurs, micro-enterprises, and established small businesses. Benefits LA Business Connect gives is DBA filing / publishing, business plans, CA corporate filing, and merchant processing. LA Business Connect communicates their values to their clients through their customer support or office. LA Business Connect strengths an affordable service, has been verified by authorize.net, and has review on their work; however, their weaknesses is being fairly new company and not having that much experience.
The structure of management consulting with an emphasis of marketing deals with how management and executives need assistance with company structuring or raising their profit levels. Majority of these companies clients are business to business trying to help out either small business or entrepreneurs. Major driving and differentiating forces for marketing consulting include: changes in technology, increasing competition within the industry, services offered, and alterations regarding the client’s environment. There are gaps in the market in which Kasbee Profit Strategy company is able to serve which is i.e. health, real estate, and entertainment. There are some barriers to entry and exit which vary depending on the sector of consulting. Overall knowledge of the sector is essential as well as basic work experience in that specific field. A larger company such as L.E.K. Consulting could create a barrier for KPS to enter certain industry they currently work with. Growthink and LA Business Connect can create a barrier for KPS to enter business with small business owners or entrepreneurs. The major buyers and suppliers would be L.E.K. has the most experience, works with international businesses, and has a larger work force. The main treat would be L.E.K. Consulting since this company provides a variety of professional services within management consulting. The only existing substitutes would be management seminars or re-training the staff opposed to investing in another company. The consulting industry is rapidly growing not only in the US but internationally as well.
Industry Structure Map
2. Environmental trends:
The trends that would impact or may impact the target market in this industry would be the statue of the business KPS is consulting. Since the economic statue is crucial toward how much businesses are willing to pay for KPS services. KPS needs to be priced efficiently, especially if its major competitors are able to provide cheap services companies will choose an alternative company. There is room for competitors to enter the market and may take KPS out of business. The main difference would be KPS’s services such as business market plan, business restructuring, and consulting business on how to improve profits. Since this is business to business it all depends on how much the companies are willing to pay for KPS services. KPS needs to take into consideration different types of trends such as environmental, political, regulatory, social, culture, technology, demographics, and key publics. Those trends can help determine whether KPS will be successful if she were to continue working in this market.
a. Economic environment:
Los Angeles, a city thriving off of powerful businesses and new emerging markets, is much like the rest of the US, rebuilding its economy since the plunge of 2008. As of now, Los Angeles has largely been successful in rebuilding its economy. Economic hardship has become more apparent and widespread across the US, and enhancing interpersonal relationships in the workplace especially in the health industry. Kasbee Profit Strategies (KPS) prides itself on the ability to create a very personal yet professional relationship with clients. As this connection is something that is now being sought after in the economy with this KPS has an advantage over competitors. With the unfortunate increase in global terrorism, the health industry is booming. As one of the world leaders in health research, reaching out to the international community could benefit KPS as very few other consulting firms have touched those markets.
b. Political and regulatory environment:
Currently there are few if any political regulations which are being imposed on the consulting industry as a whole, the reason for this being that consulting is still considered a fairly new profession. As stated in the Global Management Consulting Sector, “management consulting is less than 150 years old but it is making giant strides in the west and especially in the United States” (Gross 1). Even though political regulations are not a factor, the industry is still bound by various contractual laws and its obligations, such as “breach of contract which may include but is not limited to general damages, consequential damage and specific performance,” (School, Cornell University, Law 1) which may occur when the requirements of a contract are not met, thus leaving the consulting firm liable for damages (School, Cornell University, Law 1). There has been some push by a small group of U.S lawmakers to implement some kind of regulations when it comes to business consulting (Silver-Greenburg 1). The reason such regulations exist is primarily because of consulting firms being liable for damages when information is falsified or ignored. This stems from the 2008 financial crisis where “federal regulators are facing pressure from capitol hill after several consultants stumbled during their recent review of mortgage foreclosure abuses” (Silver-Greenburg 1). The crisis itself cannot be pinned to a single individual; however, these regulations are created to limit the use of independent consultants in government or in the banking industry due to the lack of liability.
If Kasbee Profit Strategies considers the international markets as a viable option in its growth plans, it can become a very profitable avenue. With this in mind, there are, however, some aspects to consider these include: countries culture and values, the target client base, as well as international and local laws. Other issues may arise as U.S based industries are not always welcomed with open arms in other countries. An example of this took place in Germany of 2004 which showed a resistance to the U.S style of management consulting (Rhoads, Christopher). There was a “bitter political fight which cast a harsh light on the management consulting industry in Germany” (Rhoads, Christopher 1). In opposition to these difficulties, consulting firms do have some benefits when considering international business that other industries do not. One example of this being the lack of tariffs imposed on services that consulting firms provide. Other than travel expenses and income taxes, there is very little overhead.
Overall the political stability of the market is strong but it is subject to change as with any industry as it progresses. As a service industry, there will be some resistance in international markets due to cultural differences, however this does not necessarily imply that they cannot be infiltrated, and thus, become a profitable market.
c. Social and cultural factors:
There are many social and cultural factors which influence the consulting industry.. For example, economic and political changes may overlap and fundamentally change how a society thinks. Social Responsibility will impact this industry. If a client could potentially pay less for a similar service then why wouldn’t they? Which leads to the next matter at hand, consumer preference could also has the ability to impact the industry. There could be times where a client, for undisclosed reasons would choose to use services from a different company. The services KPS offer are consistent with cultural norms and core values. There will always be business owners seeking advice as to how to get their business to thrive. At this time there aren’t very many social trends in the culture or in possible target markets’ that may impede the acceptance of the services KPS offer are access of information via the Internet. Consumers like to have information at their fingertips so it is vital that information be available through Google and other search engines. “Reference groups are groups that consumers will look to for help in making purchase decisions.” Since this is the case if a client is displeased by the service he or she received, it could potentially have a negative effect on potential clients.
The vast majority of the work of the business is going to be technological. As the implementer of complete systems for building social medial credibility, as well as the offering of writing and editorial services, so much of the work of the consultancy will be done or utilized online. Because the consultant is adept in these areas, this is an area of real strength.
Kasbee Profit Strategies can help clients increase their profits by focusing on technology in two separate ways. One of which would be to increase the client’s productivity, with good and proven systems of intra-company communication, reduction in time wasted on answering emails, over-documentation, etc. In a congested area like Los Angeles, companies also need to do more to reduce the impact of travel time on employees. By moving to teleconferencing and telecommuting. At the same time, with employees working from home, the company needs to make sure that money is not being paid for time that should be spent working but is actually spent on personal business. The other way is to increase the visibility and recognition of clients in their chosen markets. Many businesses are unaware of how to utilize social media to fuel growth. Even those who claim to know social media make can use it error. For example, may overexpose themselves by sending out too many Tweets or sponsored Facebook posts, and actually turn their target audiences against them.
It is crucial for the consultant to be on the cutting edge of new developments in computer hardware and software that might improve the efficiency of their clients, developments in social media, online and electronic advertising, as well as web conferencing. The consultant will need this knowledge to make recommendations to the client about new systems and marketing approaching. This will also be crucial to the running of the consultants own business. Clients will evaluate the consultant on the basis of her expertise. Writing talent is just writing talent, but if the consultant is not highly knowledgeable about technological change, no client will take her seriously. In fact, clients will select another consultant. Failure to maintain a knowledge base is a significant self-imposed threat to success. The consultant can also expect to be questioned closely by potential clients about her knowledge and expertise. It is possible that younger clients may be as technologically savvy as the consultant is.
One other area for which technology is crucial is in the area of business expansion. That is, her systems must be up to date, and her knowledge and use of social media for self-promotion must be as nuanced and targeted as anything she might recommend to a client. This is how her business will grow. She may begin to focus on small business, but large corporations are fee-intensive clients, and those clients need to be a long-term goal. The consultant must take advantage of every networking opportunity that comes her way, from informal networks to LinkedIn and Facebook. KPS could also gain considerable traction from a company blog, a company website, and promoting on other websites. Participation in a listserv can also generate business and recognition.
“While the growing size of population has been identified through data, their economic impact on the marketplace is also noticeable” (Kerin 61). Demographics will affect Kasbee Profit Strategies in two specific ways. First, the raw growth of the number of people aging into the over-55 demographic should open up new areas for specialization in the consultancy. Second, the social stratification of the American population, the stagnation of the middle class, and the concentration of wealth at the top of the class structure will all present both challenges and opportunities for KPS. The same can be said of a changing racial and ethnic mix.
The company needs to be on the lookout for opportunities and specialization. One of the areas for this specialization will be with the needs of the aging. The “baby boom” generation has been at the forefront of the creation of new social systems and community responses to problems. For example, it is the children of the baby boomers who became the first clients of the day care movement. Now baby boomers are starting to reach retirement age. This generation will have special needs for health care services that addresses the physical concerns of aging, psychological services that deal with mental concerns, transportation that does not involve their own driving, and even the creation of social networks that will help build friendships and support structures. Companies will arise that will specialize in trying to fill these needs. They will need consultancy on a host of issues, ranging from regulation to marketing. KPS should consider specializing in working with these kinds of firms. Most successful businesses are run by owners who are ages 45-65. As these owners age, they will also be more personally aware of their own needs, and will form businesses to begin to address them. This is a very ripe market. The following charts show the way that population trends will shift over the time that KPS will be at the peak of its business:
Table 1: Census “Population”Refer to section “Tables and Figures”
The data is most interesting where it correlates growth in income with age. The most growth in income earning for 2011 and 2012 belonged to the age range 45 to 54 years old: $65,195 and $66,411. As far racial and ethnic groups are concerned, there has been a strong growth in income for Asian Americans, whose household average income was $66,489 for calendar 2011 and $68,636 for calendar 2012.
Income and Earnings Summary Measures by Selected Characteristics: 2011 and 2012
Realistically, Kasbee Profit Strategies is not going to crack the Asian market without diversifying its staff or language skills. The same could be said about many other ethnic groups, this should be a long term goal for the company. In the short term, targeting those businesses that are catering to older Americans and also targeting firms whose clientele is at the upper end of the income scales will increase revenue in the short run but it is not the ultimate fix, Kasbee profit strategies requires a variety of clients if it wishes to be successful.
f. Key publics:
There are indeed other publics that have power and impact in the consulting industry. These publics include other consulting companies both large and small, micro-targeted consultancies, trade associations, trainers, and regulators. Each of these publics will need to be assessed by KPS if the firm is going to survive in the marketplace.
The greatest threat to KPS will come from competitors. To begin, there are already a number of quite large business consulting firms with international reach and respected reputations. These firms include such well-known names as Boston Consulting Group and Bain & Company, plus many other smaller firms that have been in business for quite some time. The chances that KPS and Boston Consulting will ever bid on the same job are small. However, the standards set by these big players, and their strong penetration into many markets, may have an impact on growth and expansion. This is another good reason for specialization.
Smaller competitors are also a public that needs to be accounted for, KPS is not the only small shop in the marketplace. There is also a number of what we call micro-targeted consultants that can pose a threat. This last category includes people who specialize in particular consulting needs. Say, a business needs only some social media counseling, or a great writer for a brochure. There are consultants who do not want to handle the range of services of KPS, but KPS will need to compete with them. There are also corporate trainers that are specifically focused on teaching companies how to make more money through the use of a particular software or management practice. KPS will, at times, have to compete with these trainers. The way to do this is to keep prices competitive and the product level high.
On the plus side, KPS can benefit from building networks with other consultants who are not directly competitive with her, and learning from their experience. There are associations of accredited small business consultants, management consultants etc, this can provide valuable information to KPS.They can be invaluable for cross-referral and to discuss the issues of the day. It is even possible that opportunities for growth and merger can arise in these sorts of network arrangements. Investors, partners, and even corporate stockholders are potential “publics” for KPS as well, even if the firm begins with modest goals and revenues.
Finally, the consultancy has a place in the governmental regulatory and tax scheme of wherever it is doing business. The organization may be informal now, but it should grow into a corporate form – most likely a “Subchapter S” form – in the near future. There will also be business permits to secure, and potentially taxes to pay on payments for services rendered.
- SWOT Table:
Table 2: SWOT Table
KPS can implement ways for a company to improve productivity and gain a greater profit. KPS understands types of issues a company may face and can provide possible solutions. KPS can take a company’s ideas into action through strategic planning. Since, Kasbee will be able to is working full time she will be able to dedicate more time to her company. In providing customized solutions for Healthcare facilities, Real Estate, and the performing arts industry KPS has a high ceiling for growth, given that the size and volume of consulting projects continues to increase as the company progresses. As the national economy works towards alleviating the pressures set from the most current recession, many companies do not have the financial backing to bring on extra full-time employees to specialize in marketing. KPS has an advantage in this respect offering long lasting professional relationships, but intermittent and long-term cost saving service employment. Developing demographic niches, such as facilities for the aging, home health care, and other businesses aimed at those age 60 and above. Using social media KPS can reach larger customer base and show the companies credibility. As the national economy works towards alleviating the pressures set from the most current recession, many companies do not have the financial backing to bring on extra full-time employees to specialize in marketing. KPS has an advantage in this respect offering long lasting professional relationships, but intermittent and long-term cost saving service employment.
a. Major threats:
Kasbee is unable to compete with other established consulting companies and may only have a limited amount of clients. Also, there could be a possibility for not being able to finish the projects on time. By hiring interns or employees this can help with the workload and could give Kasbee the ability to grow. The lack of a professional setting may be discouraging to potential clients. A possible solution could be having a business location and having an official website. KPS will also have to limit its liabilities when a business implements the strategy delegated by KPS and the company goes bankrupt this could pose a serious threat. In order to avoid instances like this KPS must take into consideration every potential outcome.
b. Potential threats:
Companies could choose the dominant competitors opposed to KPS since it is an up and coming company. Companies may not have confidence in KPS since Kasbee has only worked on a couple of projects. The lack of a social media presence may cause her to fall behind her competition, in this day and age an internet presence in necessary to be successful in a service based industry. Since KPS is still an up and coming company, there is no longevity so potential clients could choose to use another company’s services because they are doubtful.
c. Minor threats:
The competitors can buy out KPS to take her out of the market. KPS may lose funding and would be unable to launch the updated company. A minor threat that is always lurking but has a low probability of occurring is another economic meltdown like the one we experienced in 2008. Given the threat of another bubble arising from student loans, we may see another economic downfall which would take KPS down with it as she does not have the means to wait for the economy to come back. Over-regulation is a minor but present threat. A company like KPS does not face much regulation, licensing red tape, and government difficulty. In a declining economy, start-ups like KPS face decreasing demands for their services as a direct result of the instability of industry markets, causing future uncertainty.
III. MARKET-PRODUCT FOCUS & GOAL SETTING:
A. Segmentation, Target Markets, Growth Strategy and Value Proposition:
1. Market segmentation:
Kasbee Profit Strategy uses geographic segmentation to start locally in the Woodland Hills and expand to the city of San Fernando.
Also, Kasbee Profit Strategy uses behavioural segmentation through benefits, loyalty, and
2. Target market(s):
The market size will be focused on California and particularly in the Los Angeles region. KPS should target ambulance companies, real estate, and entertainment such as theatre companies. Targeting plateauing and internally inefficient companies would be the most logical and promising decision for KPS.
3. Market-product grid and growth strategy:
The market-product grid KPS should use would be Ansoff’s diversification grid since this diagram shows four quadrants of old/new and product/market. KPS is currently using current products and markets which are consulting businesses with emphases of marketing which is referred to penetration and saturation. KPS has worked with three industries which are the ambulance, real estate, and entertainment. The service she provides is implementing a method in figuring out how the business can increase the profit they are currently making. KPS would need to create contracts with these businesses in order to fund for these projects.
4. Value Proposition:
Since KPS is an up and coming company Kasbee should only focus on one industry and try to expand in her current market. Her target should be pharmaceutical with emphasize on medical transportation. In Porter’s Generic Strategies, KPS would fall under Focus Strategy since their market segment is narrow and has a low cost. KPS stays in its current markets, but focuses more on expanding within those markets. Utilizing the internet through social media allows room for growth and expansion as the services provided by the company are more easily accessible to the public.
B. Positioning Strategy:
The key positioning strategy for the firm is that KPS is small enough to be responsive, affordable enough that a small business can hire them, but with sufficient experience and expertise in limited areas to appeal to particular segments of the marketplace.KPS is able to provide management and marketing consulting at an affordable price range. Since, Kasbee would work with the company on a one on one level. Opposed to larger consulting companies which has expensive pricing on the services they provide to business. An advantage KPS could have differentiation positioning because this type of service is aimed toward local companies; however, other consulting companies will be using head-to-head position since they are more established and have offices throughout the nation.
C. Set Market and Product Goals:
- Double overall billing workload within the first year
IV. MARKETING MIX:
It would benefit KPS greatly to continue to channel its focus on the industries in which it currently works. The company already has extensive knowledge and experience in these markets. It knows the players and it knows the needs. This experience and knowledge base is invaluable, and means there will be less of learning curve than in the firm’s expansion into other industries. The result will be higher profit for KPS and for the clients. In addition, it would be advisable for KPS to offer a free advisement session for prospective clients in need of marketing assistance. This will build confidence on the part of the clients, and induce new customers to call. There is the chance for KPS to offer concrete advice at no cost to the customer that can help those businesses increase profit margins. Business leaders will see the wisdom on the spot of hiring KPS to do additional work. Another wise move for the company would be to shorten its name from “Kasbee Profit Strategies” simply to KPS. The new name is easy to remember and increases corporate identity, which will help the company when it comes to word-of-mouth and referral. In today’s digital age, the corporate logo is also important. It is far easier to design a clean and memorable logo from a three-letter corporate name than from one that is three words long. Finally, instating a fixed cost based on time per project would give KPS a more stable and consistent financial projection.
Being in the consulting industry, determining a pricing scheme is dependant on variables such as location and target industry, this can be accomplished in many different ways(i.e Hourly based pay, daily, weekly, project fees). “New entrepreneur consultants tend to undercharge for their services”(Craciun, C. 3) but we believe that functioning under a customer oriented pricing strategy would prove beneficial to KPS as it would enhance the development and strengthening of relationships among clients by specializing services to cater to their specific needs. Keeping the clients’ financial standpoint in mind allows Kasbee Profit Strategies to determine a plan of action suitable for and within the boundaries of the clients requests. In addition to the clients’ budget, overall time-length of a project must also be considered in determining accurate pricing for services. Short-term projects consist of those that take between one week or a month to complete. Long-term projects are considered those ranging from two to six months of completion. Certain aspects of KPS’ services are universal (i.e. initial project consultant, job description templates) among all clients and able to maintain a fixed price. KPS should utilize a fixed base price for each service type offered, and make changes depending on the specific requests of the customer. For example: Social media consulting would have a base starting price of $150/hr which would include analysis of the clients’ social media usage on each medium (Facebook, Twitter, etc.), and advisement on how to optimize a strong social media presence. Doing this would benefit Kasbee Profit Strategies because it ensures incoming profit off of each service type utilized with the client. This customer oriented pricing strategy maintains KPS’ high regard of customer relationships by specializing services to cater to their specific needs, and upholds its basic goal of generating profit to exceed total cost.
C. Channels of Distribution:
KPS can utilize selective distribution strategies by focusing its services on the greater Los Angeles County. This local focus will give the company increased access to the specific matrix of firms within each of its clients’ respective industries. There are major advantages to operating in a large metropolitan area like Los Angeles. The client base here should be sufficiently large to support the operations of the firm. Furthermore, there are great opportunities for expansion. A big city Los Angeles can give KPS portfolio diversity among the range of companies with whom it works, as well as increasing the range of prospective clients. The firm should plan on expanding horizontally as its profits grow, by adding employees and geographical market. Finally, by creating an actual bricks-and-mortar office with a sense of permanence, whether owned or rented, KPS would increase the confidence level of prospective clients seeking marketing consulting assistance.
D. Integrated Marketing Communications:
As mentioned before KPS needs to have an online presence in the form of a webpage and social media marketing. In order for KPS to successfully implement its IMC in a timely and professional manner, KPS will need to hire a graphic design agency or contract an individual graphic designer who specializes in web design. In doing this KPS will be establishing (1) greater sense of professionalism and (2) instilling confidence in its clients, that they will be getting what they pay for. Since any consulting is a service based industry, we believe that having previous clients’ testimonials the center of the its webpage and social media outlets will garner the audience’s attention when it comes time for them to search for a consultant such as KPS.
With web design ranging in price anywhere from $3,000-$30,000 depending on content and what it is you want your web page to do for you. Since KPS is a start up and is limited when it comes to disposable income and it is unclear as for the future growth of the company, the budget for this project will have to be done over time or via a loan.
The objective of obtaining a web presence for KPS is to garner attention for local clients and give something to compare KPS to its competition. This will also give potential clients an idea of what kind of company KPS is.
In order to be efficient and grab the attention of the right group, KPS will have to use a targeted marketing scheme in the form of mailing services and or directed emails/cold calls. By having a web page Kasbee will be able to use her social media marketing more efficiently and direct her potential clients back to her company web page which will further aid in solidifying new clients.
Message & Media Selection
Our suggested outlet of marketing is to use the internet to reach social media and newsletters as well as eventually having a mobile source. This being a consulting firm marketing does not have a season of increased sales but is more of a continuous concern. Therefore, media marketing will have to be dispersed throughout the year in order to be plausible.
[See MPX Tables and Figures table 1]
In order for Kasbee to maintain the flow of at least 4-5 ongoing projects KPS will have to create a form of direct marketing and continuously be in the spotlight of its potential clients. That will consist of knowing exactly who its client base is and developing a marketing plan that will be focused to directly catch their attention. KPS can accomplish this by formulating a call list of potential clients and creating a mailed brochure if they show some interest, as well as using linked in and a company facebook account to direct customers to its website. With every call KPS receives, we recommend that Kasbee ask basic information like the type of business, its growth rate and market type to create a consumer database.
Once a website is established, we recommend that Kasbee keep the website up to date with completed projects and testimonials from its most recent clients as well as basic information like what Kasbee Profit Strategies does and what it can offer for its clients. The website should mainly be contextual in order to maintain the professionalism across the board of all media sites.
This being a consulting firm KPS does not have very much wiggle room for promotions and sales but it can offer promotional deals like first business assessment is free or discounted rates for long term projects. Unless KPS is able to developed service packages promotions will not play a huge part in the marketing of the business but can be used as a way to make KPS known to its potential customers. As the company continues to grow expansion will be another avenue that KPS can follow but at this point the idea of franchising is out of the question and the focus should be on the development and growth of what it is now.
As stated previously all websites and social media will be used to keep current and potential customers informed and update with completed projects as well as any achievements reached by KPS in the field of consulting. KPS can also publish client testimonials on its website, by doing this KPS will generate more interest from its target market and increase the confidence of its clients. Although, unlike other product based industries KPS needs to uphold its relationship with its community, especially since that is where most of its business will be done. One way KPS can do this is by participating in events like City meetings, community gatherings i.e fairs, and charities.
E. Budget and Financials:
The pricing and fee structure currently are projects for $1800 per month and/or works 24 hours per week for $25 per hour. KPS’s average revenue is $29,794.67 and average expense $10,632.67 per year. The “break even” analysis illustrates would be be when revenue equal total cost. The break even point is $10,632.67 which seems reasonable for a start up company. KPS market share would be low since she was only working part time; however, now that she is working full she will be able to increase her revenue to compensate the increase in expenses. At this point in time there is enough resources to cover KPS expenses.
V. IMPLEMENTATION PLAN:
Our plan is to illustrate to Professor Heisley the opportunities of potential growth and to illustrate possible threats. The schedule would start with 6 months and may run until a year to fully implement the recommendations. The main person who has the responsibility to act on our suggestions would be Kasbee.
Phase one- In the first couple of months design and launch company website.
Phase two- Increase client base from 2-3 to 4-5. Also, adjust hourly rate of pay and project minimum payment.
Phase three- get unpaid intents who need work experience.
Phase four- marketing / promoting
VI. RISKS & THREATS:
Not being able to get clients or payments would be potential threats. There are uncertainties that are measurable such as become bankruptcy, computer virus, or not being able to fund promotions. KPS is maintaining business in the same field and is branching out to gain more clients within the industry she works with. Bankruptcy would not occur from this marketing plan since this report is showing ways to improve revenue. This report offers suggestions on how to improve the company and show what threats could affect KPS growth.
Demographics, political, technological and economic developments all contribute to the success of this company. The achievement to be gained is awareness of the changes to be implemented for the company. In identifying the customer analysis and the target audience will help to more deeply focus in on who will be affected by the marketing. As previously stated Strengths such as substantially low cost as opposed to the larger consulting firms, KPS also is able to have more of a personal relationship with its clients due to being a smaller and more personal business, if KPS continues to use these aspects in its business practices it will help keep the company afloat during the growth period of the company. Where as weakness like the lack of an internet presence and little to no marketing gives room for improvement. By following this marketing plan KPS will be able to maximize its profits with the standardization of project pricing as well as invest in the correct channels of distribution to increase its market share.
VIII. REFERENCES (Works Cited):
Earnings Summary Measures by Selected Characteristics: 2011 and 2012. [Table 1]
Gross, Andrew C., and Jozsef Poor. “The Global Management Consulting Sector.”Business
Economics 43.4 (2008): 59-68. ProQuest.Web. 25 Sep. 2014.
Growthink. “Business Plans, Strategy Consulting, Investment Banking Growthink.” Business
Plans, Strategy Consulting, Investment Banking, Growthink. 2014. Web. 11 Nov. 2014. <http://www.growthink.com>.
Kerin, Hartley and Rudelius. Introduction to Marketing Management, Marketing The
Core Kerin, 5th Ed. 2012
LA Business Connect. “LA Business Connect. Your Local Business Partner.” LA Business
Connect, 2014. Web. 11 Nov. 2014. <www.labusinessconnect.com/>.
L.E.K. Consulting. “Consulting Firm and Management Consulting Firms.” 2014. Web. 11 Nov.
Rhoads, Christopher. “German Resistance to U.S.-Style Management Consulting Grows.” Wall
Street Journal, Eastern edition ed.Feb 10 2004.ProQuest.Web. 25 Sep. 2014 .
School, Cornell University, Law.http://www.law.cornell.edu/wex/contract. 25 September
Modified 2014. 25 September 2014.
Silver-Greenburg, Ben Protess and Jess. “U.S Efforts to Regulate Consultants Face Big
Obstacles.” The New york Times (2013): 4.
Source U.S. Census Bureau: State and County QuickFacts.
(Strengths & weaknesses)
(how are we connecting the customers?)
(what are the values?)
(<–make these two sentences flow –>)
why is this quoted and how is this significant?
The positioning strategy captures how you want target consumers to view the client’s offering(s) relative to the competition on benefits that are important to the target(s). It locates the value proposition within the competitive environment and communicates recommended points of difference. The positioning strategy should differentiate the product/service so as to “own” a clear, distinctive, and desirable place in the minds of target customers. Provide two positioning maps that communicate your strategy.
this needs to be written out. Explain each. Be in order of importance.
this needs to be cited correctly.
Plus the only thing on this website is simple definition.