Based on the country and industry & consumer reports, you will then have to develop a very detailed business and promotional plan for Zu’s e-commerce website, which captures your recommended entry strategy into New Zealand as the sales volume grows, as well as a recommended marketing mix strategy. Your marketing plan will have to consider that Zu has almost zero brand awareness in New Zealand.
Marketing Promotion Plan
We plan to develop this marketing and promotion strategy for Zu footwear website. This is going to be a first of its kind online shoe store in New Zealand. The major competitors for the company are Ked and Hush puppies but they are also not completely online ecommerce brands. Hence we are working in a niche market as of now. We plan to have all the costs covered in this promotion activities plan as we have been allocated a budget of $50,000 for this purpose. Based on the discussion with the founders, we understand that the best entry level strategy for the company to adopt at this point of time would be too target the student segment through affordable, utility based and sport shoe offerings and then look at moving into other segments also.
We have been allocated an initial budget of $50,000 at the initial stage for marketing and promotions. Since this doesn’t include the cost of running and developing the e-commerce website, we assume that this entire budget needs to be spent on marketing and promotions along with the cost of running the logistics and operations if the business. For this purpose we can hire a low budget media buying agency that will plan out our media spend across various channels based on our strategy and would spend the money accordingly. We will keep $15,000 as cost for hiring the media planning and buying agency. The cost of running the logistics and the operations of the business would come out to be around $20,000 in the initial stage, as we would need to set up the entire supply chain and tie up with the transportation and the warehousing service providers on a contractual basis so as to ensure they are available for our service whenever the order requirement comes in from the customer. We plan to allocate the rest of the marketing and promotion budget for the events. These events are going to be conducted in both the online as well as the offline mediums. For the online events we will be conducting contests related to our product on Facebook, Twitter and Google Plus which are the most popular online social networking sites today (Kotler & Keller, 2012, pp. 200-260). Also we plan to have college events conducted in the campuses to support our online branding and promotion activities. So we will need the services of hiring an event management firm to help us out through this and also at the same time, we also need to have all the miscellaneous costs taken care of as a part of this event promotion process. Hence we would be allocating $5000 for the online event purposes and $10,000 for the offline event promotion purposes.