Marketing is one of the key components of any business operations. It has to be carried out very carefully so as to ensure that no mistakes are made and the company is able to achieve its goals and objectives (Terkan, 2014). In this report a marketing plan for Ray-Ban has been developed so as to help the company sell the Scuderia Ferrari sunglasses. Attention has been paid to aspects such as marketing mix, SWOT analysis, etc.
Developing a marketing plan is a very complicated task to perform. There are a number of aspects that have to be paid attention to in this regard. Any mistake can be very risky for the company and may even put its existence in great risks (Hollensen, 2015). There are certain requirements which must be fulfilled so as to develop an effective marketing plan. In this part SWOT analysis of Ray Ban, the leading sunglasses and eyeglasses brand has been carried out. Additionally a thorough analysis of its competitors also has been made. The company has tied up with leading car companies – Ferrari to produce and sell exclusive sunglasses.
It is one of the most effective tools through which maximum information about a company as well as the industry can be obtained (Mintz and Currim, 2013). Experts believe that the amount of information they can get from a SWOT analysis is way more in terms of quality as well as quantity. In the following paragraphs a strengths and weaknesses along with opportunities and threats for Ray Ban have been assessed.
One of the biggest strengths of the company is its experience in the sunglasses industry. Ray-Ban is considered as the one of the leading brand names in this sector. This is partly because of fact that the company has been in existence since 1937, 80 years (ANNUAL REPORT, 2016). Since the company has been in existence since so long, it has been able to create a unique brand image and position in the market, which is now helping the organization to perform well. Quality is another major strength of the firm (Leonidou, Katsikeas and Morgan, 2013). It is a well-known fact that quality is one of the main aspects that customers look for while buying any product and/or service. Thus high quality in operations and ultimately in the sunglasses has helped Ray-Ban to reach its current position. Customer appeal of Ray-Ban is very high in comparison to its competitors. It can be supported through fact that the company sells sunglasses in both budget as well as luxurious categories. Ray-Ban has products for individuals for every person from every age group (Hanssens and et. al, 2014).
The products sold by Ray-Ban have been copied numerous times over the years. These sunglasses are sold at a fraction of cost at which the company sells its products. These cheap knock-offs have severely hampered company’s revenues and profitability. Further, since it is a classic brand, many people consider it to be an ‘old fashioned’ brand. This is affecting company’s image. Pricing is another big weakness of the firm (Fan, Lau and Zhao, 2015). Ray-Ban charges exorbitant prices for its sunglasses which are way too high than the market rate.
There are plenty of opportunities available in the market that the company can take advantage of. One of them is that it can expand into other verticals such as clothing, watches, etc. Since it boasts of having a very loyal customer base, the company can expect sale of these new products will also be substantial (Harrington and et. al, 2017). The brand can also partner with music festivals such as Tomorrowland, which are famous all around the world. This way sales can be increased significantly.
In spite of so many opportunities, there are many threats as well. One of the biggest threats is the fact that this is a highly competitive marketplace (Helm and Gritsch, 2014). Due to such intense competition chances are that the company might not be able to perform to the best of its capabilities. For the long run this threat can put Ray-Ban in a very risky position. Further this industry is considered as very volatile and unpredictable market. If any economic crisis occurs, then the sunglasses industry will be one of the first markets to get affected by it.
Figure 1: SWOT Analysis
This is another tool through which performance of an organization can be compared with that of other firms in the same industry (Moorman and Rust, 2011). It can provide a lot of valuable information about the company as well as the market. In the following paragraphs competitor analysis of Ray-Ban has been carried out.
The sunglasses industry is considered as one of the highly competitive markets in the world. It has evolved significantly over the last few years with introduction of many new players. One of the main competitors of Ray-Ban is Oakley. It is an American multinational company established in 1975. One of the biggest selling points of Oakley’s sunglasses is that the firm focuses primarily on protecting user’s eyes from the sun (Peattie, Peattie and Thomas, 2012). Moreover sunglasses manufactured by the company have been found to exceed the ANSI test standards on a number of occasions. This provides a thorough explanation of quality of Oakley’s sunglasses.
Polaroid is another main competitor of Ray-Ban. The company was established in 1937 and since then it has become a leading name in the eye wear and sunglasses industry. One of the unique selling points of company’s sunglasses is that it uses press-polishing technique to manufacture polarized lenses (Khan, 2014). This way polarizing capabilities of the lens is preserved. Through this method the firm is able to produce lenses with greater degree of curvature.
Marketing is one of the main functions of any business organization. Special attention must be paid to this process so as to ensure that the company is able to not only survive in the market but also fulfil its goals and objectives. In essence it can be said that success of a company is heavily dependent on its marketing function. It helps in making the firm visible in the industry, but also develop an effective and positive image among the stakeholders (Patil and Bach, 2017). In this report a marketing plan for Ray-Ban has been developed to sell its Scuderia Ferrari sunglasses. The two organizations have partnered to sell exclusive F1 motorsports merchandise under the Ferrari Ray-Ban brand name. Through this marketing plan strategies that the company can use to promote and sell the product in the market have been discussed.
Primary objective of this marketing plan is to highlight marketing and financial objectives of the company in relation to sale of the Ferrari sunglasses. In addition, this plan also consists of ways through which these goals can be fulfilled. By using this marketing plan, management of the company can devise a strategy through which it can enhance its performance and become sustainable. One of the main benefits from this marketing plan will be that it will enable the firm to focus on the competitors and make its strategies more viable for current market conditions.
This marketing plan can be useful to the company in a number of ways. By using this plan, the authorities can focus on enhancing performance in terms of sales and revenue as well as profitability and financial stability as well. In this section marketing and financial objectives of this plan have been described.
Following are the marketing objectives that can be achieved through this marketing plan.
· Increase online presence on social media by 25%.
· Achieve sales worth $2 million.
· Enhance presence in new and developing markets.
In the following points financial objectives that can be achieved through this plan have been described.
· Increase sales by 29% in the next six months.
· Reduce total liabilities by 6%.
· Lower financial risks by restructuring liabilities and assets.
In this part of the report marketing plan for the company through marketing mix has been explained. Herein the researcher sheds light on a combination of seven different elements that the company should use in order to achieve the above mentioned marketing and financial objectives.
The most important element of a marketing plan is that of the marketing mix. It consists of seven different elements which when combined together can help the firm to achieve its targets and strengthen its position in the market (Mintz and Currim, 2013). A marketing mix holds critical importance in developing an effective marketing plan. It consists of different steps and elements that the authorities will consider while promoting the product and/or service. The following points consists of an evaluation of these seven elements that Ray-Ban’s management will have to pay attention to in order to conduct the marketing function in an effective and efficient manner.
· Product: The company will sell high end sunglasses which have been manufactured by using different elements used in manufacturing cars. Ray-Ban has partnered with Ferrari in this regard and will source such materials from the car manufacturer (Hanssens and et. al, 2014).
· Place: In order to sell this product the company will use two forms of distribution strategy. These sunglasses will be available at only some selected Ray-Ban outlets. This will help in making the product exclusive to some customers only. Additionally it will also be sold through company’s website (Patil and Bach, 2017). This means both ecommerce and brick and mortar approach will be used to sell the sunglasses.
· Price: This is a very important component of any marketing strategy and plan. An organization must pay special attention to the pricing strategy (Terkan, 2014). Since the products being sold by Ray-Ban here has been developed in partnership with Scuderia Ferrari, it is needless to say that the target customers will be individuals belonging to upper class structure. Thus price skimming strategy should be used.
· Promotion: Since target customers for the company are people belonging to high class societies, it can be suggested to Ray-Ban’s management that the company must use only exclusive techniques to attract these customers (Leonidou, Katsikeas and Morgan, 2013). It could include the likes of email marketing to the select individuals. Majority of these customers will be Ferrari owners. Thus Ray-Ban can get access to their email ids. In addition the company can also social media to promote the sunglasses.
· People:The company should train the employees at the select stores in terms of different aspects of cars made by Ferrari. This way they can easily interact with the customers and sell the sunglasses to them.
· Physical evidence:The sunglasses as well as its case and pouches will have logo and branding of both Scuderia Ferrari and Ray-Ban.
· Process: Some materials such as carbon fibre will be used in the manufacturing of the sunglasses. This will add a premium feel to the product and make it look exclusive as well as attractive.
Sunglasses with some unique design elements used in cars of Ferrari
Only at select Ray-Ban retail outlets; and through its website
Price skimming; targeted at upper class people
Online marketing through social media channels like Facebook, Twitter, YouTube, etc.
Sunglasses, cases and pouches with Ferrari logo and branding
In store employees will be trained so that they can interact with customers who have special liking for cars made by Ferrari
Sunglasses will consist of different elements used in car manufacturing such as carbon fibre
A very crucial activity for any business organization is that of marketing. Studies have shown that it is the backbone of a company and thus has a crucial role to play in success of an enterprise. Objective of this research report was to develop a marketing plan for Ray-Ban to sell sunglasses for which it partnered with Scudria Ferrari. The report consisted of marketing and financial objectives. Additionally a SWOT analysis of the company was also developed in the report along with a thorough analysis of state of competition in the industry. Further the 7P’s of marketing mix were used to provide detailed analysis of marketing plan for the company.
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