1. C O M P A N Y G
3 - Y E A R M A R K E T I N G P L A N
Student Name: Kristina Brents
Student ID: 000283536
Date: April 1, 2014
Mentor: Debra Payne

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I N T R O D U C T I O N
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M I S S I O N S T A T E M E N T
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P R O D U C T D E S C R I P T I O N A N D
C L A S S I F I C A T I O N
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C O N S U M E R P R O D U C T C L A S S I F I C A T I O N
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T A R G E T M A R K E T
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C O M P E T I T I V E S I T UA T I O N A N A L Y S I S
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P O R T E R ’ S F I V E F O R C E S M O D E L O F
C O M P E T I T I V E F O R C E S
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S W O T A N A L Y S I S
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M A R K E T O B J E C T I V E S
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M A R K E T I N G S T R A T E G I E S
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J U S T I F I C A T I O N O F S T R A T E G I E S
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AC T I O N P L A N T AC T I C S
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M O N I T O R I N G P R O C E D U R E S
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R E F E R E N C E S
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INTRODUCTION
Company G has been a leading innovator in todays’ electronics market. Company
G has developed a new, never before seen product that will take the world of small
appliances to the next level. Our new product, the XG Ultra Coffee Station, will allow
anyone to have a coffee house experience, all from the comfort of their home, without
sacrificing time or flavor. The marketing plan, outlined below, will guide Company G to
launching their new product line, while maximizing the profit potential for the product.
MISSION STATEMENT
“We enable consumers to improve the quality and convenience of their lives by
providing innovative electronics solutions.”
PRODUCT DESCRIPTION AND CLASSIFICATION
The XG Ultra Coffee Station takes the typical morning coffee experience to a whole
new level. With never before seen features and the ease of use, this modern marvel will
be a must have addition to any home or office. The XG Ultra Coffee Station takes your
morning cup of coffee from a morning boost to a morning blast with a one touch
experience that takes you from coffee beans to a cup of fresh coffee within minutes.
Technology like this does not exist anywhere else in the industry. The XG Ultra Coffee
Station stores water and coffee beans, so all you have to do is put your cup in place, press
a button, and walk away. You can finish your shower, or get the kids ready for school,
come back, and have a fresh “cup of joe” begging to be drank. Alternatively, you can
place your cup the night before, and send a signal to the Ultra Coffee Station in the
morning, using your smartphone; you can have a fresh cup of coffee waiting for you by
the time you make it to the kitchen!! Integrated wireless and Bluetooth technology
allows the user to effortlessly control their coffee experience, with little to no effort. The
morning coffee experience just got a lot more exciting, thanks to the XG Ultra Coffee
Station!!!
Consumer Product Classification
The XG Ultra Coffee Station would relate most to the “shopping” category of the
three-way consumer classification system. The item would be purchased less frequently
than a convenience item, and customers will spend more time comparing our item to
other items of similar function. Although the niche market is a lot smaller than the niche
market for a convenience product, Company G will use advertising and promotions to
leave our customers in awe of our unmatched technology, and make them decided to
never buy another product that is not XG!
Target Market
Based on various market studies and product testing groups, we have determined that
the XG Ultra Coffee Station will be well received. The target market is coffee lovers
who want more than just an “average” cup of coffee every day, 25-50. The target market

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includes consumers who make one or more coffee purchases per week.
Target market demographics include individuals and families making more than
$40,000.00 per year. These customers will tend to be families or individuals that lead a
very active lifestyle, mostly professionals, who would rather devote their time spent in
the coffee house drive thru to their careers or family.
Competitive Situation Analysis
Porter’s Five Forces Model of Competitive Forces
Outlined in the following section is the analysis of external threats that could affect
the success of the all new XG product of Company G. Current market demands show a
rising popularity of coffee purchases, as consumers are spending less time in the kitchen
in the mornings. Company G will attempt to capitalize on this market trend with the XG
Ultra Coffee Station.
Competitive Rivalry: The main competitors for Company G are the existing
manufacturers of coffee makers such as Keurig, Nestle’s Nespresso, and other
companies, such as Hamilton Beach and Bunn. Nestle is the biggest rival, leading with a
34.7% world market share at the close of the 2011 year. Keurig, while leading the US
industry, accounts for only 7.5% of the world market share. The rest of the market is
shared between various other companies, including Hamilton Beach and Bunn (2014).
Most rivals sell their products in large stores such as Walmart and Target, as well as
online in marketplaces such as Amazon and Overstock.com.
Threat from New Entrants: Threats from new entrants will be relatively minimal
due to our patented three step design along with integrated Bluetooth and wireless
technology. Low Research and Development costs coupled with our ability to create this
product at a lower cost than that of other companies will dissuade most other companies
from market entry for a similar product.
Threat from Buyers: Overall the threats posed by our buyers should be pretty low.
Company G works with a select few distributors to retain exclusivity. We also offer
credit term that follow the industry standard to our conciliators. We will be able to pass
along a plethora of savings to both the distributor and the end users of our product
because we have positioned our company as the lowest cost producer for products similar
in nature and design.
Threat from Suppliers: Threats posed from our suppliers could be moderate to
high. Company G strives to continue the successful relationship we have had with our
existing suppliers, however, due to the complexity of the products integrated wireless and
Bluetooth technology, we may see some difficulty in finding a supplier that will supply
the technological components at a price that will be both cost efficient for production, as
well as cost effective for our target price and market. We are exploring alternative
companies that will be able to supply us these components at a cost that will allow for an
advantageous edge over our competition as well as obtaining an exclusive deal with the

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supplier we choose so that possible competition will not be able to gain the same edge
that we have on the current market. It should also be noted that Company G is currently
researching the possibility that we will be able to partner with the companies that hold
patents over wireless and Bluetooth technology so that we may, in the future, develop the
components in house, so that we can drive the production cost even lower, and lower the
potential threat that our suppliers may cause.
Threat from Substitutes: While no other company makes a product exactly like
ours, there are substitutes that will provide the same end result as our XG Elite Coffee
Station. This is or highest potential threat in today’s market. While we provide a very
exclusive design and experience that no other company has to offer, less complex, lower
end products could prove to be a considerable threat to this new product. Our customers
know that our products are both one of a kind and that they lead the world in innovation
when it comes to small appliances. Add to that the one of a kind experience, brewing a
fresh cup of coffee from the bed or the bathroom, and customer will see that they will not
have a better morning coffee experience than that of the XG Elite Coffee Station. Our
loyal customers will be ready and willing to purchase. However, new customers will pose
our biggest challenge, as we have to show that our product is worth the extra cost over
lower cost substitutes.
SWOT Analysis
The table below illustrates both the strengths and weaknesses and opportunities and
threats that Company G is likely to face in the current market. Below the table, further
explanation is given.
STRENGTHS (bold type indicates
core competency)
 Industry standard product developer
with unmatched innovation and
technology
 Loyal customer following that provides
guaranteed sales, contributing to
financial security
 One of a kind product with integrated
wireless and Bluetooth technology
WEAKNESSES
 Unable, at this time, to produce the
wireless and Bluetooth components,
current supplier does not offer. Need
new supplier for these technological
components
 Higher cost than substitute products
that may be considered by new
purchasers
 One model
OPPORTUNITIES
 Online sales allowing us to reach and
sell to more customers
 Potential to partner with online
retailers as well as gaining seal of
approval from wireless and Bluetooth
THREATS
 Patented wireless and Bluetooth
technology could be hard for
Company G to gain usage rights
 Already recognized and popular
companies making lower cost

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producers
 Potential to gain a larger market
share than our competitors
substitutes
 Coffee houses everywhere across the
globe, could deter people from making
a large initial investment
Strengths
1. Company G is the industry leader in innovative small appliances. With our
longevity in the market as well as our commitment to excellence, our
company is held in the highest respects across the globe as producers of
small appliances. This is one of Company G’s core competencies.
2. Our loyal customers have provided us with guaranteed sales. This
guarantee has given us the financial security we need to employ the
greatest team of developers and engineers in the industry. With the support
of our great team of designers, developers and engineers, we have been
able to create and produce new products with more advanced technology,
which has increased the potential for profit as well as value added to our
customers. This strength is also a core competency.
3. The patented design, complete with integrated wireless and Bluetooth
technology offers something that no other company or product has offered
before. Not only does this give a fresh, new feeling product to our
customers, it also protects our place in the market, as no other company
offers a product like it.
Weaknesses
1. The inability to create the components for the integrated wireless and
Bluetooth technology is one of our most concerning weaknesses. Because
our current supplier does not offer these components, we need to find a
reliable supplier and negotiate a steady price, so that we can continually
produce the product without having to worry about production costs or
cost to the end user.
2. Since our product has so much technology built in to it, the cost of our
product could be significantly more than that of substitutes made by other
companies. Value added and innovation could potentially help reduce the
threat of this weakness.
3. At this time, we only have one model for our XG Elite Coffee Station. Our
competitors offer various sizes and models for the substitute product. This
is a weakness for Company G, as new customers may see this as an
indicator that other companies have an advantage over our product.

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Opportunities
1. The ability to sell in an online market, whether direct or through our
distributors will allow us to reach more customers, gain a larger share of
the market, and gain a competitive edge over other companies that sell in
market or department stores. This will also allow us to reach international
markets, establishing a new customer base.
2. Partnering with online retailers including Amazon, Overstock, and
DHGate will allow us to sell our products to loyal shoppers of those sites.
Also, the potential to gain a seal of approval from the creators of wireless
and Bluetooth technology will give us a competitive advantage, as
customers are more likely to by a product endorsed by a trusted brand or
name.
3. Due to our one of a kind products and loyal customers, we have the
potential to gain a large share of the market of coffee maker purchases,
both in the Americas and internationally. This will give us the opportunity
to expand our business operations and grow our revenues.
Threats
1. Currently, the biggest threat we face is the ability to obtain usage rights for
wireless and Bluetooth technologies. If we do not obtain these rights, then
the concept for a one of a kind coffee experience will not be as obtainable
for Company G. Right now we are relying on suppliers to provide us with
the components to use, but we hope to obtain the rights to use and produce
the components in house so that we may drive costs down and pass those
savings along to our customer.
2. The most immediate threat Company G faces with the XG Elite Coffee
Station is the lower cost, lower end substitute brands already established in
the market. While they do not offer the same concept and innovation that
Company G has to offer, it could pose a larger threat to new customers
that are thinking of purchasing a coffee maker. While we have a one of a
kind experience, new customers not loyal to the XG brand may find that
the lower cost products may be more cost effective, and that the extra
options the XG product may not be worth the additional cost.
3. Coffee houses will always remain a threat to our product. People may feel
that even though they end up paying more for their coffee at Starbucks or
Scooters, they do not have to pay such a high initial investment. This will
be the most lasting threat that Company G and the XG Elite Coffee Station
Faces.

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MARKET OBJECTIVES
Product Objective
The product marketing objective for the XG Elite Coffee Station is to educate the
target market about features and benefits of the product and see an increase of sales by
5% in one year. Also, we would like to raise product awareness by 30% in three years.
Price Objective
The price objective for the XG Elite Coffee Station is to use the Penetration Pricing
method for the first year of launch, to capture the market share, then deploy Cost Plus
Pricing at a 25% margin to decide what the final selling price should be.
Place Objective
The place objective for the XG Elite Coffee Station is to have Selective Distribution
channels. The product will only be available direct, from our exclusive distributors, and
from exclusive online retailers.
Promotion Objective
The promotion objective for the XG Elite Coffee Station is to increase market
presence by trade show demonstrations in major cities all over the globe. Our goal is to
increase market presence by 15% this year, and 10% each year thereafter for the next 3
years.
MARKETING STRATEGIES
Listed below are the strategies Company G will employ to meet the Market
Objective we have set for the XG Elite Coffee Station. These strategies outlined will
assist Company G in educating the target market, increasing sales and profit, and
establishing an increased market presence to maximize the profits of the product in its
target market.
Product Strategies
o The XG Elite Coffee Station will come with a year supply of coffee beans of
the customers choosing, for a discounted fee. The beans can be paid for either
for the whole year, at the best discount, or in two 6 month payments, four 3
month payments, or twelve monthly payments. This will give the customer the
ability to choose what beans they would like, while allowing them to utilize
the features the Coffee Station has to offer, educating our customers of the
benefits of using our product, thus increasing product sales as well as product
awareness for our end users.
o Updating the look of our product, giving them a more ‘modern’ feel, which
will increase the appeal of or XG products and increase sales.

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o Create a short instructional video that will come with all of our XG Elite
Coffee Stations to increase user education and develop a long lasting customer
relationship.
Price Strategies
o Determine average cost of products similar in nature and introduce a product
launch campaign that will price the XG Elite Coffee Station at a cost below
the average cost of similar products to gain the interest of the market, both
domestic and international. This initial offering period will last for 6 months.
o After capturing the market share for our products in the initial offering, we
will then utilize the Cost Plus Pricing method, adding a 25% markup to the
product to recover the revenue lost in our initial Penetration Pricing model and
allow for a profit above the cost of production. This Cost Plus Pricing model
will last for 1 year.
o After the first year and a half, we will then reduce our prices again to a yet to
be determined average, that will allow us to remain competitively priced as
well as to make a profit from our product.
Place Strategies
o Begin advertising our new product on our website 6 months before the initial
offering, allowing customers to preorder the product directly from us before it
is available in stores or online.
o Supply our trusted distributors with displays, sample products, and inventory
of our new line of the XG Elite Coffee Station 3 months before launch, so that
they are able to deploy a “coming soon” campaign, and gain interest of our
target market.
o Establish exclusive deals with specific online retailers, such as Amazon and
DH Gate that will allow them to sell our products, boosting the availability of
our product to international consumers, versus only being able to purchase
direct or from exclusive national retailers as it was in the past.
Promotion Strategies
o Set up ad campaigns with our retailers, media, and social networking 3
months before launch, promoting a special “coming soon” preorder
opportunity that will come with special pricing.
o Organize the ability to demonstrate the XG Elite Coffee Station at major
dealer trade shows at least 4 times per year all over the nation at by the end of
the first year of launch.

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o Promote semiannual price specials. Customers who purchase direct will get
the best pricing, followed by purchasing from our exclusive retailers, then our
online retailers. This will go into effect the second year following launch
around the typical Black Friday promotions offered by competitors, then it
will occur yearly around Mother’s Day and Black Friday.
JUSTIFICATION OF STRATEGIES
The multi factor, well planned strategies outlined above will allow Company G
attain the goals we have set for the first three years of product launch. As an industry
leader in small appliances, we already have an edge over the current market, and
employing the strategies that we have planned, it will have a sling shot affect and launch
our product, as well as our profits to the number one small appliance producer globally.
Our plans will establish a greater market presence than we have ever had with any other
product, allow our customers to be more informed buyers, and will place the XG Elite
Coffee Station as the industry leading product in just a few short years. By following this
plan as it is written, this will not only allow us to accomplish the goals we have set for
marketing, it will also increase our revenues, allowing us to put money back to research
and development of future products.
ACTION PLAN TACTICS
The Action Plan below will be followed specifically in order to meet goals and
deadlines that are necessary to guarantee product success for the XG Elite Coffee Station.
Detailed below are the actions that must be completed, the date they must be completed
by, as well as the person who is responsible for overseeing the project.
Product Action Plan
Tactic Due Date Responsible Party
Lock in deal and
pricing for supplier of
beans for customers who
wish to purchase year
supply at special price.
July 2015 Supplier Manager
Finalize and approve
new product look.
September 2015 Research and
Development Manager,
Board Approval
Develop instructional
video and marketing
material
October 2015 Marketing Manager

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Price Action Plan
Tactic Due Date Responsible Party
Conduct market
analysis of competitors
pricing to adjust prices.
November 2016 Marketing Analyst
Determine Cost Plus
price for second round
pricing.
January 2016 Accounting Department
Set final prices for
product after first year
and a half laucnh
July 2017. Global Sales Officer
Place Action Plan
Tactic Due Date Responsible Party
Develop and launch
coming soon preorder
opportunity on our
website with special
pricing.
April 2015 Marketing Manager/Web
Page Designer
Finalize and approve
contracts for distributors.
May 2015 Legal
Department/Distribution
Manager
Finalize deal with
online retailers and
launch their “coming
soon” campaign.
July 2015 Corporate Relations
Officer/Marketing Manager
Promotion Action Plan
Tactic Due Date Responsible Party
Set up “coming soon”
ads for our website,
demonstration stations in
our retailer’s stores, and
July 2015 Corporate Relations
Officer/Marketing
Manager/Web Page

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marketing ads on our
online retailers websites.
Designer
Set up trade show
contracts and dates to
demonstrate product
August 2015 Marketing Department
Manager
Host first ever Black
Friday event and prepare
for future Mother’s Day
and Black Friday events.
November 2015. Promotions
Manager/Web
Designer/Marketing
Manager.
MONITORING PROCEDURES
Below are the steps that are necessary to be taken in order to ensure that the XG
Elite Coffee Station is operating as expected, as well as ensure the marketing plan has
enabled Company G to attain the goals set forth for the XG brand.
Monitoring Activity Due Date/Frequency Responsible Party
Monitor ongoing
promotional campaigns
to see what elicits the
most favorable response
from our consumers.
Monthly and
Semiannual analysis reports
due on the second Thursday
of the month for Monthly
reports and the second
Friday following the six
month marker.
Marketing
Manager/Sales Manager
Develop reporting
procedures to compare
sales by period to
expenses per period to
determine profitability.
Monthly, Quarterly, and
Semi Annual reports due by
both the sales and
production department on
the second Thursday
following the close of the
period.
Sales and Production
Managers/Accounting clerk
Consumer Feedback
Surveys
Sent to customer via
mail or email, based on
their preferred method of
correspondence. Must be
processed in to analyzable
data within 5 business days
from when it is received
back from the customer to
be analyzed by a special
Customer Satisfaction
Team/Customer Satisfaction
Manager

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team.
REFERENCES
K L I N E , D . ( 2 0 1 4 , A P R I L 7 ) . K E U R I G V S N E S P R E S S O :
T H E B AT T L E F O R S I N G L E - C U P C O F F E E S U P R E M A C Y.
R E T R I E V E D A P R I L 1 , 2 0 1 5 , F R O M
H T T P : / / W W W . F O O L . C O M / I N V E S T I N G / G E N E R A L / 2 0 1 4 /
0 4 / 0 7 / N E S P R E S S O - V S - K E U R I G - T H E - B AT T L E - F O R -
S I N G L E - C U P - C O F F . A S P X