There are certain guidelines that must be followed when making a Preliminary Marketing Plan. First, it’s important to note that there are a lot of information provided by the internet including shopping for products, as well as connecting with various people across the world. This brings up the issue to buy every item that a person might need by visiting several sites. This marketing plan is for the Armco, a company totally centered around providing the customers with a website having all the individuals and items that any person would ever wish to have (Romo n.p). The company has a plan to focus on the area of Latin America, particularly the Mexico since it is an upcoming nation economy and the first in moving towards the online retailing industry and therefore will be dominating the market share.
Among the marketing objectives of Armco Company include the specific description of target market that comprises of online services for every person who has the capability of using a computer for connecting in the market. Another objective is to focus on the sales for its first five years of operation, which however, will be small but that exactly what the Company is expecting. They are also expecting sales amounting to $500 million in the first year. On the second year to the fifth year, they will be expecting 750-775, 1.125-1.3125 billion, 1.6875-1.96875 billion, and 2.53125-2.953125 respectively (Romo n.p). Other objectives include to forecast on the profit for the first 1-5 years, as well as penetration of the market and coverage.
On the other hand, the Company is also characterized with certain strengths, weaknesses, opportunities and threats. One of the strengths is that Mexico the growth of Mexico as a new market to explore has shown that there is an opportunity in online retail as well as the rise of online sales. The weakness that the company faces is the likelihood of new entrants in addition to the associated nonexistent switching cost, which will probably lead to a proponent competition. One of the opportunities is that while entering a new market will provide them different variables that will ultimately see the Company entering a multinational venture (Romo n.p). Finally, the major threat they will face will be from the political system of Mexico, which is characterized with bribes and corruption.
On the other hand, the Armco company also projects that the market will maintain a stronger growth rate for the coming few years, which will comprise of several entrants alongside the improvement of global infrastructure. They would probably rely on tourism as a significant source of revenue that has also been a greater contributor to the country’s economy. Therefore, this implies that corporations such as Armco will significantly benefit from tourism. The three most important products that Armco Company will consider having are such as Auto Parts, clothing and electronics (Romo n.p). They feel that these are the products that the Mexican consumers will mostly need apart from wants, but they will as well anticipate other products falling under the category of wants, which as well become their important source of revenue.
Finally, the Company anticipates that they the employees they would hire will all be the Mexican citizens, which will ensure that there is low skills and labor costs. Additionally, the Company will also ensure that the local and the national governments allows for a smooth entrance the Mexico since they will understand that the Company will be creating jobs and supporting their economy as well (Romo n.p). In conclusion, they will also ensure that they have an expatriate selected from a number of various applicants. He will be responsible for hiring, training, culture, strategy and research.
Order Unique Answer Now