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Proposalforreshapingtheshampoobrand“Venus”

Contents

ExecutiveSummary

1

Introduction

1

FindingsandAnalysis

2

1.Strengths

2

2.Weaknesses

2

3.Opportunities

2

4.Threats

3

5.ProductStrategy

3

6.Advertisingplan

3

7.SalesStrategy

4

8.CostBreakdown(UnitofMeasurement:RMByuan)

4

9.Benefits

5

10.RisksandManagementPlans

5

Conclusion

6

ExecutiveSummary

Duetothereputationoftheproducthasdeclined,themarketshareofbrand“Venus”iscontinuingtodecline.Asaresult,"Venus"Shampoopanyisfacingaseriouscrisis.Thepanyhasachoiceoftwomarketingprograms——pricecutsorreshapethebrand.AftertheanalysisofthemarketsituationandtheSWOTanalysisof“Venus”Shampoopany,wedecidetoadoptthemarketingplanofreshapingthebrand.

“Venus”Shampoopanywillimplementtheplanthroughaseriesofadsandproductupdatestrategysoastoreshapethebrand.

Themarketingplanwillcost2,000,000yuan.Throughtheimplementationofthisplan,"Venus"willonceagainbeeoneofthemostwell-knownshampoobrands.Besides,thesalesvolumeof“Venus”shampooisexpectedtoriseby25%,andthepany'sprofitwillriseby15%.

Introduction

Thebrandof"Venus"isbornin1990,whichaimedatthosefemaleconsumersagedbetween15and30-year-old.Itgavepeopletheimpressionoffashion,romantic.Shortlyafterthepanywasfounded,itexperiencedarapidexpansionofmarketshare.Asaresult,"Venus”,whichwasastrongregionalbrandofGuangdongProvinceatfirst,becameintooneofthenationwidemajorbrands.Ithadamarketshareof4%soon.Andmorethanadecade,"Venus"keptonmaintainedthe4%Marketshare.Overtheyears,thebasisproductof"Venus"andthepackaginghavemadeseveralchanges,buttheappearanceoftheproducthaveneverbeenchanged.Furthermore,theadvertisementof“Venus”——"Venus:aromanticproductesfromEurope"——alsohasneverbeenchanged.In2006,themarketshareof“Venus"startedtodeclineslowly.Until2008,twoyearsafterthedeclinehappened,the“Venus”Shampoopanybegantopayattentiontothisproblemseriously.

Itisclearthat"Venus"Shampoopanyisfacingtheproblemofbrandaging.Duetointernalandexternalreasons,thebrandmeetsaseriesofprobleminmarketpetitionsuchasthedeclineinreputation,sales,aswellasmarketshare,iscalledbrandaging.Brandagingcausesenormousharmtobrandowner,makingthebrandownerslostpartofitsregularcustomers.Andthistrend,onceformed,itwouldbedifficulttoreverse,asifitentersasituationas"grave”,saidDavidAaker,whichischaracterizedas:everyoneknowsthisbrand,namelyitisafamousbrand,butpeopledonotrememberitwhenmakepurchasedecision.

Thebestsolutiontosuchaproblemistoreshapethebrand.Throughaseriesofadvertisingandproductupdate,wecanreshapethe"Venus"asahigh-end,fashion,tastefulshampoobrand.

FindingsandAnalysis

Strengths

Wethinkthatthestrengthsarecrucialinreshapingthebrand.Thereforeweshouldtakeadvantagesoftheexistingstrengthsthoroughlysoastosavethebrandandrescuethe“Venus”Shampoopany.Thesestrengthscanbeillustratedinsuchfactorsas:

Theproductsofthisbrandaresoldalloverthecountry,anditisstillanationwidebrandwhichhasamarketshareofnearly4%.

ThebrandhasamysteriousandromanticEuropeanstyle,whichgivespeopletheimpressionoffashion,romanticandtasteful.

Thebrandhasalonghistory;asaresult,ithasagreatnumberofloyalcustomers.

Thepanyhasstablechannelsofadvertisingandanexperiencedadvertisingteam.

ThepanyhasanexperiencedR&Dteam.Furthermore,itisdevelopingakindofnewshampoonow.

2.Weaknesses

However,wethinkthattheweaknessesarevitaltooinreshapingthebrand.Thereforeweshouldmakeaclearunderstandingoftheexistingweaknessessoastomakeupforthesedeficiencies.Theseweaknessescanbeillustratedinsuchfactorsas:

Thekindsofproductswhichthe“Venus”Shampoopanyprovideforconsumersareveryfew.

Thebrandimageof“Venus”isoutdated,anditsattractivenesshasgonedown.

Duetothepoorinternalmunicationofthe“Venus”Shampoopany,itisexceedinglydifficulttoreachconsensusbetweendifferentdepartments.

Thepanyhasonlyonesalesmodel,whichcannotsuittothechangesinconsumerbuyingpatterns.

Thepany'sstaffsarelackofawarenessofthetrendofconsumptionandarenotsensitivetochangesinthemarket.

Opportunities

Opportunitiesareexternalfactorswhicharebeneficialtotheimplementofourplan.Itisfeltthattherearegoodopportunitiesforustoreshapethe“Venus”shampoobrand.Thesecanbeillustratedinthefollowingfactors:

Throughouttheshampoomarket,customerbuyingpatternsareverydifferent,andwecanmakeuseofthischaoticsituationtoreshapethebrand.

Allotherproductsonthemarketarelackofwinningstrategy,namelythereisnotanybrandwhichhasformedthemonopolypositiononthemarketyet.

Duetothedeclineinbrandloyaltyofcustomers,onesinglebrandcannotoccupythewholemarket.

Threats

Threatsareexternalfactorswhichareharmfultotheimplementofourplan.Itisfeltthattherearesomethreatsforustoreshapethe“Venus”shampoobrand.Thesecanbeillustratedinthefollowingfactors:

Theretailersdonotsupportthe"Venus"brandasbefore.paredwiththepast,manymerchantshaveloweredthe"Venus”shampoo’sshareofshelfspace.

Thebarriersofmarketentrancehavereduced.Asaresult,manynewproductshaveemerged,andtheyalltryingtograbmarketshare.

5.ProductStrategy

Firstofall,letusanalyzeandpositiontheproductsof“Venus”ShampoopanyaccordingtotheBCGmatrix.Itisclearthatthe"Venus"Shampoopany’sexistingproductbelongstothecash-cowbusiness.Itsgrowthprospectislimited,buthighmarketsharemakesitthepany’smainsourceofcashineinshortterm.Therefore,suchabusinessshouldnotbegivenup.Thenewproductthatthe“Venus”Shampoopanyisdevelopingmaybebelongstothestarbusiness.However,throughmarketresearch,webeeawareofthatthegreenproductisthesymbolofhigh-qualityintoday'smarket.Asaresult,webelievethat,basedoncurrentconsumptiontrends,the“Venus”Shampoopanyshoulddevelopakindofgreenproductimmediately,anddevelopitintoakindofstarbusiness.Basedontheaboveanalysis,wehaveformulatedthefollowingproductstrategy.

Definetheexistingproductofthe“Venus"Shampoopanyas"ClassicSerial",soastopreventthelossofloyalcustomers.

BringthenewkindofproductwhichtheR&Dteamisdevelopingnowintothemarketassoonaspossible,anddefineitas“FashionSerial”.

Immediatelystarttodevelopakindofgreenproduct,anddefineitas"GreenSerial".

6.Advertisingplan

Intheprocessofreshapingthebrand,advertisingplaysanimportantrole.Webelievethatthe"Venus"Shampoopanyneedstoimplementanationwideadvertisingcampaignsothatmoreandmoreconsumerswillbeawareofsuchashampoobrandanditsproducts.Basedontheaboveanalysis,wehaveformulatedthefollowingadvertisingplan.

Choosesomeofthemassmediaasadvertisingmedia,e.g.televisionadvertising,themagazineoflife(especiallypopularfemalemagazine),FashionTVprograms,outdoorbillboards,busbodyadvertisementandsoon.

Conveneanumberofnewsmediasoastoholdapressconferenceofnewproducts.

7.SalesStrategy

Throughmarketresearch,weknowthat,themarketingchannelsof"Venus"shampoohavealwaysbeenthesupermarketsandretailstores.However,intoday'sshampoomarket,consumerbuyingpatternsareextremelydifferent.Asaresult,thesinglesalesmodelofthe“Venus”Shampoopanyobviouslyisunabletosuitforthechangesofconsumers’buyingpattern.Moreover,accordingtothefeedbackofsalesforce,weareawareofthattheretailersdonotsupportthe"Venus"brandaswellasbefore.paredwiththepast,manymerchantshaveloweredthe"Venus”shampoo’sshareofshelfspace.Tosolvetheseproblems,wehaveformulatedthefollowingsalesstrategy.

Providemoreprofitsforretailerstoimprovetherelationships.Sothatwecanwintheirsupporttothe“Venus”brandanditsproducts.

Exploreanddevelopmoreandmoremarketingchannels,suchassetupsomespecialcountersinhigh-endsalons,high-endshoppingcentersanddrugstores.Moreover,wecanbuildanonlinetradingplatformfor“Venus”.

Providecustomerswithhighqualityafter-salesservice.High-qualityafter-salesserviceisasymbolofhigh-endbrands,aswellasthebestpromotion.Weshouldmakeuseofsomemeanstoimproveourafter-salesservice.Tonameafew,weshouldopena24-hoursservicehotlineforcustomersandmakesurethatthereisactuallysomeonewhowillanswertheconsumers’plaintsorquestions.

Implementthecustomerrelationshipmanagement(CRM).Customerrelationshipmanagement(CRM)isaboutunderstandingthenatureoftheexchangebetweencustomerandsupplierandmanagingitappropriately.Theexchangecontainsmonetaryconsiderationbetweensupplierandcustomer,butalsomunication.Thechallengetoallsupplierorganizationsistooptimizemunicationbetweenpartiestoensureprofitablelong-termrelationships.

Useavarietyofpromotionalmeans

8.CostBreakdown(UnitofMeasurement:RMByuan)

Accordingtotheestimation,theplanwillcost2,000,000yuanwhichincludeR&Dcosts,advertisingcosts,andoperatingexpensesandsoon.Expensesforspecificitemsarelistedasfollows:

R&Dcosts:TheR&Dofnewproductswillcost400,000yuan.

Advertisingcosts:Thecostofadvertisingincludingtelevisionadvertisingexpenses,magazineadvertisingexpenses,outdoorbillboardsexpensesandbusbodyadvertisingexpenseswouldreach1,200,000yuan.

Televisionadvertisingexpenses600,000

Magazineadvertisingexpenses400,000

Outdoorbillboardsexpenses100,000

Busbodyadvertisingexpenses100,000

Operatingexpenses:Thecostofcarryingouttheplanwouldbe100,000yuanwhichincludemanagementcosts,financecostsandentertainmentcosts.

Promotioncosts:Thecostofpromotionwouldbe300,000yuan.

9.Benefits

Suchabrand-reshapingplanwilleffectivelymakeuseofthe“Venus”Shampoopany'sexistingresources,whichincludethehigh-endbrandimageof“Venus”,theexistingproduct,thenewproductthattheR&Dteamisdevelopingnow,theexistingmarketingchannels,andsoon.Asaresult,theimplementationofthisplanwillnotbringthepanytoomuchfinancialpressure.Furthermore,theplantakesfullaccountofthepany'sproblemsandgivesremendationsforimprovements.

Webelievethatthroughtheimplementationoftheplan,the"Venus"brandcanbesaved,anditwillonceagainbeeoneofthemostwell-knownshampoobrands.Besides,thesalesof“Venus”shampooareexpectedtoriseby25%,andthepany'sprofitwillriseby15%.

10.RisksandManagementPlans

However,weshouldalsotakeaccountoftheriskswemightconfrontwhenweputtheplanintopractice.Forexample,someofthepany'semployeesmayresisttheimplementationoftheplan;thestaffswhowilloperatethedetailsmaynotunderstandthepracticalsituationsothattheplanwillbecarriedoutindifficulties;duetothepoorinternalmunicationofthepany,itmaybeexceedinglydifficulttoreachconsensusbetwee

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