Posted: August 6th, 2022

Business Plan

Marketing

Plan

Acacia Brown, Ryan Lambe, Lucas Lambird, Consuelo Nava
LARC Marketing, Inc.

701 S. Nedderman Dr. Arlington, Texas 76019 T 817. 654. 7890

Table of Contents

LARC Marketing, Inc. 701 S. Nedderman Dr. Arlington, Texas 76019 T 817. 654. 7890

LARC Marketing, Inc. 701 S. Nedderman Dr. Arlington, Texas 76019 T 817. 654. 7890 1

1.0 Executive Summary

3

2.0 Current Marketing Situation

4

2.2 Market Description

4

2.3 Product Review

5

2.4 Competitive Review

6

2.5 Distribution Review

6

2.6 SWOT Analysis

7

3.0 Objectives and Issues 8

3.1 Marketing Strategy

9

3.2 Action Programs Metrics

11

3.3 Pro Forma Budgets/Financials

13

3.4 Additional Controls

13

McKesson

1.0 Executive Summary

McKesson has done an excellent job at establishing themselves as a successful distributor of pharmaceutical, medical device technology, as well as health services. Focused on the blood glucose market, the company provides their customers with broad product line offerings available for purchase. However, as technology progresses and consumers step further into the preference of technology ease, McKesson needs to make some adjustments in order to keep up with the changing market desires. In order to gain more of a market share in the pharmaceutical and medical technology industry, the company needs to shift their focus from primarily offering self -monitoring glucose monitors to continuous glucose monitors, with paired technology of their mobile app available on Apple and Android smartphones. With foot traffic and pharmacy sales as high as they are in store, we recommend McKesson partners with CVS as well as boosting their own sales within the Health Mart Pharmacies, by creating incentives to customers buying their products online or in store.

2.0 Current Marketing Situation

Founded in 1833, McKesson has grown from a small pharmaceutical wholesale and distribution business into a global name, with bearings in pharmaceuticals, medical devices, and health care services. McKesson currently has a smartphone app compatible with Apple devices, to help aid in the process of refilling prescriptions, receiving, and paying for pharmacy services for customers through their Health Mart pharmacies.

McKesson has a diverse lineup of blood glucose supplies as well as a selection of their own glucose meters, in addition to plenty of other company monitors and tools McKesson sells and distributes.

In order to compete with competitors and utilize the technology McKesson has available to the fullest capacity, McKesson should partner with CVS pharmacies and offer an incentive program for customers who pair their glucose monitors bought online through McKesson or in store at one of their Health Mart or CVS pharmacies, with the Smartphone App. Through the app, customers will be able to make refill orders, initiate payments, track their blood sugar levels, get daily trend updates to their own personal health portfolio, app alerts when levels are off, and free advice or recommendations on how to stay healthy and balance levels.

2.2 Market Description

Just in the United States alone, over 100 million Americans are either pre diabetic or diabetic.[footnoteRef:1] With a number so large, the target market is virtually very wide but given the technology aspect McKesson would be offering to their market, the ideal target consumer would be pre diabetic or diabetic Millennials and Generation Y. [1: Centers for Disease Control and Prevention. (2020, February 11). National diabetes Statistics Report, 2020. Centers for Disease Control and Prevention. https://www.cdc.gov/diabetes/library/features/diabetes-stat-report.html.]

As technology progresses, consumers have a growing desire for products to be easy to understand and use. With the app provided through McKesson, continuous blood glucose systems will allow consumers ease and functionality in measuring and tracking glucose levels, while gaining incentives for purchases made through their app at one of McKesson’s partnered pharmacies.

2.3 Product Review

McKesson offers seven categories of glucose meters to customers.

Application Type

Description

Blood Glucose Meter

(87 products)

· Stores readings
· Portable
· Requires blood sample
· Measures blood glucose levels

Blood Glucose and Ketone Meter

(2 products)

· Stores readings
· Portable
· Requires blood sample
· Measures blood glucose levels
· Measures blood ketone levels
· Results can be downloaded

Blood Glucose and Cholesterol Meter

(4 products)

· Stores readings
· Portable
· Requires blood sample
· Measures blood glucose levels
· Measures Cholesterol

Continuous Blood Glucose Sensor

(2 products)

· Sensor inserted in arm
· Instant results

Blood Glucose Sensor

(1 product)

· Stores readings
· Portable
· Measures blood glucose levels

Continuous Blood Glucose Reader Kit

(1 product)

· Sensor inserted in arm
· Instant results
· Measures blood glucose levels

Transmitter

(1 product)

· Measures glucose level
· CGM

2.4 Competitive Review

McKesson has a number of competitors in the blood glucose industry, but the top three competitors include:

1. Walgreens Boots Alliance

Walgreens and Boots have joined in an alliance, making a successful company specializing in distribution, as well as online and wholesale product and pharmacy sales. Walgreens provides incentives to their customers using the Dexcom CGM system, making filling and paying for this product at a Walgreens pharmacy easy and convenient.

2. AmerisourceBergen

AmerisouceBergen acts as a distributor of pharmaceuticals between manufacturers and pharmacies or healthcare providers. In order to make sales easy, the company provides pharmacies with an array of diabetic tools and monitors to get customers through the doors.

3. EMIS Group

EMIS Group specializes in technology and healthcare services to aid physicians. The company has created a system that documents patient measurements through the ease of a mobile app compatible with Apple devices, collecting information into a personal health record[footnoteRef:2] to be shared with physicians. [2: Spencer, C. (n.d.). HealthKit makes citizen health a reality. EMIS Health. https://www.emishealth.com/insights/latest-articles/healthkit-makes-citizen-health-a-reality/.
]

2.5 Distribution Review

In order to increase ease of purchasing and sales within pharmacies, McKesson will have three modes of distribution available to consumers.

1. E-Commerce through McKesson Website

2. M-Commerce through Mobile App

3. In store at select pharmacies (CVS and Health Mart)

2.6 SWOT Analysis

McKesson has great products and a level of distribution to be marveled in the market. However, there are changes that should be made in order to utilize their resources to the highest capability and maintain competitiveness with companies making technological advances.

Strengths

· Brand Portfolio: As a major pharmaceutical and medical device distributor, McKesson has a multitude of products for consumers to choose from. Referencing the product table above, just the glucose monitor offerings total to 98 products available.

· Brand Image: McKesson has grown into a global healthcare company focused on providing consumers with the best possible service in order to alleviate any challenges facing the healthcare industry today.

Weaknesses

· Technology: Although McKesson has software pharmacies can use to help run a smooth operation, the company has not utilized their own technology practices to the highest degree, missing out on a large group of consumers who rely heavily on their devices for practically everything.

· Lack of growing products in the glucose market: Although McKesson has an enormous brand portfolio available, there are certain devices that are not as prevalent as others. For example, there are 87 self monitoring blood glucose meters and only two continuous blood glucose sensors available on their website for purchase. The company is missing out on a large segment of the market who prefers a CGM over an more time consuming monitor.

Opportunities

· Partner with CVS pharmacies: Although McKesson has pharmacies all over the United State called Health Mart, McKesson is missing out on another large player in the pharmacy game; CVS. With other companies partnering with large pharmacies like Walgreens, CVS could be an opportunity for McKesson to gain a larger segment of the diabetic market.

· Expand technology use: McKesson should adapt their app into a user friendly, diverse mobile application available on both android and apple products to help consumers manage their blood glucose from purchase, to tracking and uploading to their health portfolio.

Threats

· Competitive technology advances: Other companies in the healthcare industry with a focus on distribution and pharmaceutical or medical devices are taking steps forward in the technology sector, becoming increasingly attractive to patients and health care physicians.

· Growing competition: With companies gaining more funds and expanding, distribution and pharmaceutical industries are becoming increasingly populated with big and small competitors.

3.0 Objectives & Issues

Objectives

· Promote high standards in the pharmaceutical product production and quality assurance

· Build brand and product awareness among target customers by 50% within a year

· Provide a convenient system to enable customers to see current levels of glucose and trends, from their mobile device, at any time

· Increase market segment that prefer a CGM system over the traditional insulin pump alone

Issues

· CGM system safety and effectiveness could be affected by several user-related and technological issues, among those insulin pump faults. CGM sensors are required to be replaced depending on the model, for accurate reading. Errors due to calibration can affect accuracy, making it unsafe until recalibration. Implanted sensors might fail to function due to an immune response.

· Strong and well established competitors already in the market. There are currently four companies available in the United States, which are Abbott, Dexcom, Medtronic, and Senseonics Eversense. Cost of advertising and promotion could be high to gain product awareness and market share.

· Investment is possibly required to educate healthcare professionals and users. It is necessary for optimal use in the interpretation of data outputs, software issues arising, and adjusting existing pump settings.

· Such technology might turn into an additional burden of care for some users

· App and pump might not be one of the doctors top choices to recommend to their patients, prolonging the adoption and awareness in the market.

3.1 Marketing Strategy

Communication Strategy

· Informative advertising: Meet with administration,business leaders, providers, distributors, support staff to discuss the challenges, concerns and values . Obtain their buy-in and increase awareness.

· Persuasive advertising: Promotional activities through social media, stating the features and benefits of the app has to offer with the insulin pump to help grow adoption rate. Use video promotions through social media and websites to give customers understanding of the app.Offline promotion would include informative take home flyers and promotional posters displayed at CVS and other owned pharmacies. Make the app visible and available in app stores of Apple( for iphone) and Google (Android), as a vehicle of communication to potential new users.

· Reminder advertising: Pricing and promotion changes, offer discounts, and trials. Another way is messaging push notifications to “push out” information from the company’s app and creating engagement from the user side.

· Doctor Segments: A user is able to order a CGM system through a pharmacy, but needs a doctor’s prescription. Physicians, endocrinologists, and diabetes educators will educate and influence user adoption of CGM. Doctors discuss the pros and the cons of various choices with their patient.

Marketing Research

· Identify users problems: Receive feedback from popular platforms that are directly related to the app.

· Identify doctors preferences: Identify why do they recommend one CGM system over another

· Conduct a competitor analysis: Know the weaknesses and strengths of competitors. Research the number of downloads the apps are receiving, ranks, and pricing.

· Secondary data analysis: Observation of market trends and growth rates.

· Primary data analysis: Conduct surveys, which will provide valuable information over immediate needs and wants of the target market.

· Create a value proposition: Make a connection between the app and precise user problems by describing the advantages in detail that would address those issues.

Marketing Organization

· Develop a mobile app team: It is important to have a team that’s knowledgeable of the latest mobile app development trends.

· Application managers: Ensures smooth flow of information between members. Ensures coordination within the team during app development. Manager’s input will provide value in the planning, marketing and offering service.

· Mobile Application Designer: In charge of designing the application and branding of the software. Ensures that features are incorporated into the app such as the logo, marketing components and website.

· Developers: In charge of programming and specifying the actual operations of the app.

Positioning

· This product is being positioned as mainly appealing to millennials and generation Y

· One of the main marketing points of this product is being able to access your glucose/sugar levels straight from an app on a cellular device, so naturally that positions this market towards the younger crowd

· By attracting the younger crowd and creating a user friendly app and technology, we are setting this up to only grow and grow in the future

Product Strategy

· Customers will buy a glucose monitor through CVS in person, online, or through the app

· When they get this glucose monitor from McKesson, they can monitor all of their health levels, make refill orders, get daily health tips, etc

· After purchase of the app customers get all of these incentives which will build brand loyalty

Pricing Strategy

· This is going to be a very nice, highly technological monitor that is being sold, with that being said it will not be cheap to purchase, but it is not going to be anything outrageous. As seen above, not only are you just monitoring your glucose levels but there are so many more incentives that come along with it as well. As seen below, our meter market price is 4,000$. Down below in the action metrics will go into specifics.

Distribution Strategy

· This meter will be available in every medium

· It can be purchased in store at CVS

· It can be purchased online

· It can also be purchased mobily on an M-Commerce mobile app

3.2 Action Programs Metrics

Disclosure: McKesson will pay $20 million annually to app developers to keep the app updated and running smoothly.

Meter Production Cost

$1,500 per meter

Year 1

· $1,500 x 120,000 Meters Ordered

· $20,000,000 App Development and Maintenance

o Total Budget: $200,000,000

Year 2

· $1,500 x 280,000 Meters Ordered

· $20,000,000 App Development and Maintenance

o Total Budget: $440,000,000

Year 3

· $1,500 x 600,000 Meters Ordered

· $20,000,000 App Development and Maintenance

o Total Budget: $920,000,000

Year 4

· $1,500 x 1,200,000 Meters Ordered

· $20,000,000 App Development and Maintenance

o Total Budget: $1,820,000,000

Disclosure: CVS Health will receive 20% revenue of every meter sale for marketing the product.

Meter Market Price

$4,000 per meter

McKesson Sales Revenue (after production cost & CVS’s percentage)

$2,000 per meter

Year 1 – Rollout year, some success.

· Target Meter Sales: 100,000 x $2,000

o Total Revenue: $200,000,000

Year 2 – Marketing campaign kicks in, more success.

· Target Meter Sales: 250,000 x $2,000

o Total Revenue: $500,000,000

Year 3 – More customers through word of mouth.

· Target Meter Sales: 500,000 x $2,000

o Total Revenue: $1,000,000,000

Year 4 – McKesson reaches our goal of 1,000,000 units sold.

· Target Meter Sales: 1,000,000 x $2,000

o Total Revenue: $2,000,000,000

3.3 Pro Forma Budgets/Financials

Meter Production Price

Meters Ordered

App Development/Maintenance

Total Budget

Year 1

$1,500

120,000

$20,000,000

$200,000,000

Year 2

$1,500

280,000

$20,000,000

$440,000,000

Year 3

$1,500

600,000

$20,000,000

$920,000,000

Year 4

$1,500

1,200,000

$20,000,000

$1,820,000,000

Sales Revenue Per Meter

Target Meter Sales

Total Revenue

Year 1

$2,000

100,000

$200,000,000

Year 2

$2,000

250,000

$500,000,000

Year 3

$2,000

500,000

$1,000,000,000

Year 4

$2,000

1,000,000

$2,000,000,000

Budget

Revenue

Net Income

Year 1

$200,000,000

$200,000,000

$0

Year 2

$440,000,000

$500,000,000

$60,000,000

Year 3

$920,000,000

$1,000,000,000

$80,000,000

Year 4

$1,800,000,000

$2,000,000,000

$200,000,000

3.4 Additional Controls

CVS Health will take on a majority of the marketing campaign, but McKesson will also rely on Medical Doctors to inform their patients of the product when they are asked about McKesson’s Meter by their clientele.

Marketing Plan

Presenter: Jacquez Polk, Alejandra Lara, Cherie Barranco-Miller, and Erin Woodruff

JACE Marketing, Inc.

701 S. Nedderman Drive, Arlington, TX, 76019 P:817-272-2011

www.jacemktg.com

Table of Contents

1.0 Executive Summary ……………………………………………………………………..2

2.0 Situation Analysis ……………………………………………………………………..3

2.1 Market Description ……………………………………………………………………..3

2.2 Product Review ……………………………………………………………………..3

2.3 Competitive Review ……………………………………………………………………..3

2.4 Distribution Review ……………………………………………………………………..4

3.0 SWOT Analysis ……………………………………………………………………..4

3.1 Competition ……………………………………………………………………..7

3.2 Product Offering ……………………………………………………………………..8

3.3 Distribution ……………………………………………………………………..9

3.4 Objectives ……………………………………………………………………..9

4.0 Marketing Strategy ……………………………………………………………………..9

4.1 Marketing Research …………………………………………………………………….11

4.2 Marketing Organizations ……………………………………………………………………12

5.0 Action Program Metrics ……………………………………………………………………12

5.1 Sales

Revenue

Forecast ……………………………………………………………………13

5.2 Break-even Analysis ……………………………………………………………………14

5.3 Additional Controls …………………………………………………………………….14

6.0 Reference Page ……………………………………………………………………16

1.0 Executive Summary

We at JACE Marketing Inc. have been hired by JCPenney to create an effective marketing plan to increase customer loyalty and strengthen their weaknesses. The lack of online retailing and digital marketing has put JCPenney in danger of losing consumers during this epidemic, since most shopping is now done remotely. JCPenney has a broad range of products from home goods, jewelry, fashion, etc. and it is our job to create financial growth and exceed sales projections compared to our competitors.

2.0 Situation Analysis

JCPenney is a retail company that has been around for 119 years. During that time, it has gained nationwide customer loyalty because of its ability to provide basic needs. Although it has had over a century of success, it still has weaknesses like any other company, such as its presence in e-commerce. It has had a tough time promoting its brand on digital platforms, so it faces threats from companies like Kohl’s and Walmart that have a strong presence in online retailing. However, due to covid many consumers have been forced to shop online for their products, so this is an opportunity for JCPenney to meet the demands of its customers by strengthening its weakest attribute.

2.1 Market Description

JCPenney has targeted mostly lower- and middle-class families as its customers and set up mid-range department outlets. The company believes in everyday value and has implemented its pricing strategy on this. Most customers are women who are ages 55 years and older, less fashionable, and price conscious.

2.2 Product Review

JCPenney is a well-known retail outlet in America that sells conventional products in its stores. It has nearly one hundred individual boutiques that offers products for men, women, and children regardless of their age-group. It ranges from furniture, home decor, dining appliances, bed and bath products, footwear, jewelry, beauty products, and much more.

2.3 Competitive Review

JCPenney has many competitors, however what separates them from rival companies are their low everyday prices. JCPenney’s pricing strategy is referred to as “fair and square pricing.” JCPenney has tried to cut back the number of sales, and instead offered customers a flat rate that was considered best price for the product. This relied on the customer’s trust with the JCPenney brand since they were being given a fair price for their merchandise.

2.4 Distribution Review

JCPenney is an American company with its operations spread nationwide in 49 states and in Puerto Rico. Keeping with changing times, the brand started developing and relocating stores to places where consumer traffic was high; so, it is mostly based on shopping malls of suburban areas. Since 1998, it has also started internet retailing with a high success ratio.

3.0 SWOT Analysis

JCPenney has gained brand recognition among consumers throughout the 119 years it’s been in business, but the drawback to the company’s brand is that it’s known for providing basic needs to mid-level households. The company has made many attempts through the years trying to reinvent themselves with little to no success, drawing confusion to the brand’s identity. The major threat is as the company continues to struggle from years of failed strategies, others of the like, have slowly crept onto the scene stealing away market share.

Strengths

Strong brand recognition

James Cash Penney founded the Golden Rule store in 1902 with the simple philosophy of treating others as we would like to be treated, committing to high standards of everything they do. The company grew exponentially, and today has 650+ retail stores nationwide offering apparel, home furnishings, and services appealing to mid-level consumers who are budget conscious without sacrificing quality. This is supported by a “supply chain network of 11 facilities, which includes merchandise distribution centers, regional warehouses, jcp.com fulfillment centers and furniture distribution centers,” (jcp.com). Brand recognition isn’t enough to sustain. It needs the brand value it once had that drove people to buy there.

Private labels

JCPenney has a robust portfolio of private labels, not to mention celebrity brands. Partnerships with these brands benefit the company because it costs less to manufacture and distribute. The savings gained are then distributed to the customers at offered discounts. Private labels are already considered high quality alternatives vs the nationally known brands giving JCPenney good online price positioning as private labels continue to gain traction with consumers.

Weaknesses

Limited market share

JCPenney has been slowly hemorrhaging market share among companies with similar offerings, losing their sense of retail relevance. What’s more is even though they have ample presence across the states, they have limited global presence, which is another segment that can be captured through e-commerce.

Marketing – brand presence

JCPenney has had a weak presence in marketing strategies to effectively promote the brand and show its presence among the digital channels. When the pandemic hit, people were stuck at home and marketing missed the market and lost out on the surge of home essentials being bought on e-commerce sites where their home essentials house brand Loom + Forge should have made money.

Opportunity

Digital marketing

The COVID pandemic has changed the way consumers shop and how businesses were forced to innovate in ways to meet demands of their customers. Technology has become the lifeblood of every business operation and there’s no slowing down.

Disposable income

Income growth has shown a slight growth in developing countries around the world, especially in Asia and the U.S. With the effects of the COVID pandemic aside, the economy has steadily come back to full operations. Hence, the need for JCPenney to take advantage of the marketing strategies to appeal to the consumers with more disposable income.

Threats

Business conditions

Just when it couldn’t get any worse for JCPenney had a looming $5 billion debt and COVID was forced to file for Chapter 11 bankruptcy in May 2020. In December 2020 it was quickly bought out by Simon Property Group, Inc. and Brookfield Asset Management, Inc., for $1.75 billion and the remaining creditors had forgiven. Shareholders disillusioned, further devaluing its public perception. However, the conditions of this bankruptcy buyout could benefit JCPenney because The Authentic Brands Group who owns retail brands like Forever 21, Lucky Brand, Nine West, Brooks Brother, and Barneys will be contributing these brands to the JCPenney lineup.

Ecommerce

JCPenney was once an e-commerce leader as one of the first department stores to have an online catalog. However, the proverbial nail in the coffin happened in 2011 when Ron Johnson focused strategy on brick-and-mortar catering to higher end customers and abandoned its e-commerce site. Abandoning its core value proposition, loyal customers deserted JCPenney for Walmart or Kohl’s of the like. Johnson was asked to leave after seventeen months, but the effects of this had a lasting consequence. Present day, reeling from bankruptcy and the economy attempting to get back to normal from the pandemic, consumers’ perception of online shopping has effectively changed and are very dependent on e-commerce for everyday needs and wants. Retail has been hit especially hard, and companies are vying for the exclusivity of your dollar. JCPenney must differentiate its offerings to re-capture its lost market share.

3.1 Competition

The retail industry is one of the most demanding fragmented segments to fulfill with so many to choose from. According to consumerdecisions.org, online shopping statistics were at $2.8 trillion in 2018 worldwide. JCPenney is in direct competition with Kohl’s, Macy’s, and Walmart.

· Kohl’s is a well-known retailer with one primary differentiation, location. Most are stand-alone stores located in every large city positioned off the highway or main roads that have high traffic. They have similar product offerings to JCPenney including their own lineup of private labels. The recent partnership with Amazon accepting returns was a good strategic move to help boost foot traffic which helped by 24% when first initiated.

· Macy’s is one of the oldest department store chains founded in 1858 and is iconic for their yearly Macy’s Thanksgiving Day Parade. The brand appeals to a high-level consumer that is willing to spend a little more for high end luxury goods through their Bloomingdale’s chain or bluemercury beauty store.

· Walmart’s value proposition is to offer “everyday low prices.” They have an efficient supply chain and are successful with its house brand Great Value that is perceived to be just as good if not a better product at a much lower price point.

3.2 Product Offering

Subscription boxes are not a new concept these days. It’s a continuously growing niche that has taken over the online market to differentiate among competition, essentially a new way to sell existing products. The concept is simple yet effective drawing consumers to subscribe. Not only is it convenient with today’s fast paced environment, but also akin to the anticipation of opening a present on your birthday. JCPenney’s new concept store was designed to be more customer centric, which in part includes a styling expert at all women and men’s fitting rooms. To play off this concept, JCPenney will be offering a similar subscription box. Customers will be personally styled by JCPenney StyleMe. Take a quick quiz to let JCPenney stylists know a little bit about preferences and an algorithm will help identify the customer’s personal style and taste through JCPenney brands in a wide array of styles and sizes that cater to the budget they set. Order a StyleMe kit, schedule them as little or as often as preferred. The membership will have a cost of $25 dollars a month, bimonthly or quarterly, in which the fee can be applied toward the kit purchase to reward members, with free shipping and returns. The client receives a kit containing $100 to $150 worth of clothing and accessories, try everything on at home, keep what you love, then send back the rest. Customers have the option of curbside or instore pickup, and the same with returns. The JCPenney StyleMe subscription is unique in the sense that customers have the option to pick up or return their kits and get assistance from an in-house stylist by appointment. Returns can be exchanged immediately without customers having to wait for new items in the mail and at the same time get a one-on-one personalized styling experience. While about 80% of companies believe they deliver outstanding customer service, only a small margin of customers believes otherwise and JCPenney wants to change that perception.

3.3 Distribution

JCPenney StyleMe kits will be available through a select few channels.

· JCPenney department store

· Online at jcpenney.com

· Social media site like Facebook, Instagram, and Pinterest

3.4 Objectives

The marketing objectives for JCPenney is as follows:

· Increase JCPenney’s revenue by

5%

in

2022

. This is the first step in the overall long-term goal of expanding into global markets.

· To attract and retain customers through its core value of fair and square pricing strategy.

· To capture, retain, and enhance customer loyalty to the brand through database marketing. Offering new programs that will differentiate among competitors will focus on customer centric methods.

4.0 Marketing Strategy

Positioning

JCPenney originally positioned itself as a store offering discounts, and low prices appealing to people of all ages, especially shoppers aged 55 and over, shortly after, they tried to target ages 18 to 30 by eliminating discounts and promotions but failed to recognize that the 55-year-old market was vital in their sales (Chloe, 2014). JCPenney should focus on the original market, a store for all ages. By expanding their clothing line to a wider age target market, it would gain a stronger hold on market share in the retail industry.

JCPenney has focused on the concept of “high quality, low price” and their strategy has been to introduce their products at a high price and then discount them at a low price to give the customer the appearance that they are getting a bargain. In order for JCPenney to attract all target markets, JCPenney should have unique strategies for each market, for example, maintaining coupons and discount strategies for the target market aged 40 and above, while the market aged 18 to 30-year-olds should use a low-price, fixed-price approach. In this way they could reach a wide variety of clients without compromising JCPenney’s mission.

Product Strategy

JCPenney stores will be all about making the customer experience easier and more enjoyable upon entering. Paying will be easier by putting the cashiers in an area visible to the customer. New boutique style areas will be introduced as will new brands in a wider variety of sizes.

We will also be introducing a monthly membership, our new online membership will be able to offer a variety of styles tailored to the customer’s needs. Thanks to an innovative algorithm that will help us identify the customer’s needs and taste. With this new membership the client will be able to try the clothes and only buy the garment that they liked the most, returning the rest.

Membership payments will be automated with options to pause enrollment, move, or cancel membership. This will help retain customers who are not ready to buy.

Pricing Strategy

In-store discount purchases will be tailored mainly to elderly people while low fix-rated prices will be targeted to the young target market.

The online membership will have a cost of $25 dollars a month, bimonthly or quarterly. The client can receive a box containing $100 to $150 worth of brand clothing and only pay for what they keep. This method will be tailored mainly to the young internet users that are looking for a quick fashionable and trendy look or the busy customer that can’t go to the physical store.

Distribution Strategy

JCPenney will continue to have physical stores in select areas. However, JCPenney will increase its online presence to drive traffic to its website and its new membership program.

Communications Strategy

The JCPenney brand has many benefits as it is recognized worldwide and will have no difficulty communicating its strategy. In the past, JCPenney has failed to use social media to communicate to the public. The new communication strategy will be to use social media networks such as Tik Tok, Instagram, and commercials on YouTube to attract the attention of the young crowd. For example, reaching out to young influencers to promote membership on their social media or in the form of a 15-30 second commercial. This will help expose JCPenney’s new membership strategy.

Also creating advertisements for local newspapers would help retain the older customer base since they tend to read newspapers and use coupons when they visit the store.

4.1 Marketing Research

In the past, our biggest consumers have been people over 55 with incomes of less than $ 35,000 a year (Chloe, 2014). We have decided to segment the market into three levels, the first level with ages 1 to 18 years old, since this segment is a great influence on the purchase decision in the household. The second tier is ages 19 to 30 year old as this market tends to be more price conscious with incomes under $ 30,000. This market is ideal for offering low, fixed prices. The third level are ages 31 year old and up who are more susceptible to in-store discount strategies and promotions, this level has an income of $ 35,000 and below.

4.2 Marketing Organization

We recommend following psychographic segmentation as part of our marketing organization strategy. This type of segmentation will help us to evaluate the consumer from a socio-economic point of view in order to provide branded clothing at a competitive and affordable price. By including this type of strategy, it will allow us to understand how consumers view our products, know what they really want and need, and how to communicate with the target audience. Also, it will allow us to conduct surveys such as open-ended questions, likert scale questions or semantic differential scale questions to better understand the consumer wants and needs.

5.0 Action Program

The first step in forming an action program is starting to know and understand our customers while building a customer profile. These things include getting to know our customers’ preferences and characteristics as well as understanding their interests and specific style. By building this customer profile, it allows JCPenney to know who their consumers are and allows JCPenney to make the JCP StyleMe subscription as personal as possible. This will allow us to know our competitors and understand our target market in the retail and subscription industry while being able to identify and evaluate the competition. Our action that we are going to focus on is both a digital action plan and a customer success plan. By incorporating both, it will not only let us focus on our customers, but it will also let us focus on revamping our brand digitally through a new form of customer service. JCPenney will then conduct targeted prospect research by using focus groups and online surveys to identify customer product and customer satisfaction as well as the dissatisfaction. This will help us understand which products are more popular than others.

JCPenney will use a more integrated marketing approach to announce our new personal subscription box, JCP StyleMe. Using this personal approach will be very effective because it will allow us to engage with our customers on a personal level. Before the launch, JCPenney will distribute the release of JCP StyleMe by incorporating stores, emails, commercials, social media and all other digital platforms to advertise. The company will also offer endorsements to influencers to be our spokesperson to gain insight and to help raise product awareness for the new release. We will then propose to all existing customers that already have and use JCPenney rewards as an incentive. When offering an incentive to JCPenney reward members, for example, offering a first-month free trial, free shipping and bonus items, it will definitely attract the right customers. This action program will ensure high sales and growth for the future of this company.

5.1 Sales Revenue Forecast

Over the next five years, the analysts that follow JCPenney predict earnings to grow at an average annual rate of 5%.

5%

5%

5%

5%

2021

2022

2023

2024

2025

2026

Sales Growth

5%
Revenue

11.69 B

12.27 B

12.89 B

13. 53 B

14.21 B

14.92 B

JCPenney has forecasted to spend a total of 200 million in marketing expenses and promotion costs annually, and the action program strategy is projected to spend 162 million, therefore, JCPenney is projected to spend 1.1 billion in variable costs within the next five years.

5.2 Break-even Analysis

JCPenney would need to sell 15,083,333 units in order to cover fixed costs. If the anticipated 50,800,000 units are sold, then your profit/loss would be $857,200,000.

Total fixed costs= $362,000,000

Sales price per unit= $25

Anticipated unit sales= 5,080,000

Variable cost per unit= $1.00

5.3 Additional Controls

After the launch of this product, we will review our results over the next year to see if and what changes need to be made to the marketing plan. We will then look at the product sales, making sure we are on the right track of our annual growth rate. If we are not on the right track, this will determine when and if changes need to be made to the marketing plan.

Constantly monitoring customer feedback through polls and surveys will allow us to know when and if something needs to be adjusted to the plan according to the results of the research.

6.0 Reference

C. (2014, August 15). JCPenney’s Positioning Strategy. Chloé’s Portfolio. https://chloebhalley.wordpress.com/2014/02/17/jcpenneys-positioning-strategy/

Sestak, K. (2021, July 5). Lessons from the Failure of J.C. Penney’s New Pricing Strategy. Profitwell. https://www.priceintelligently.com/blog/bid/152018/lessons-from-the-failure-of-j-c-penney-s-new-pricing-strategy

JACE Marketing, Inc. 701 S. Nedderman Drive, Arlington, TX, 76019 P:817-272-2011 www.jacemktg.com

JACE Marketing, Inc. 701 S. Nedderman Drive, Arlington, TX, 76019 P:817-272-2011 www.jacemktg.com 1

UTA Marketing, Inc.
701 S Nedderman Dr, Arlington, TX 76019

Presenters: Virginia Bartin, Logan De Groot, Samir Hachem, and Yash Patel

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 1

Executive Summary 3

Current Marketing Situation 4

Market Description 5

Product Review 5

Competitive Review 6

Distribution Review 8

SWOT Analysis 9

Objectives and Issues 10

Marketing Strategy 11

Positioning 12

Product Strategy 12

Pricing Strategy 13

Distribution Strategy 14

Communications Strategy 15

Marketing Research 16

Marketing Organization 17

Action Program Metrics 17

Pro Forma Budgets/Financials 18

Additional Controls 18

References 19

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 2

Executive Summary

Comerica, one of the largest banks in the US, offers a multitude of banking services.

These services involve three different branches: business banking, personal finance, and wealth

management. The financial industry has experienced drastic change in the past few years, with

the instability in the market due to the pandemic to the volatility caused by reddit forums.

Technology is also rapidly advancing, and Comerica needs to keep up with the times and adapt

to market trends. The banking and finance industry is slowly shifting to cater online services

which Comerica is behind on. With the technological advancements Comerica will reach a new

market, however, they must try to educate and push their current market into this new way of

banking. In this marketing report, we suggest potential avenues to explore in the advent of these

drastic changes in the marketplace and how they can gain a competitive advantage in the market.

By offering more investment in technology they can create a new look to their app and online

banking as well as establish a standing in new trends such as Crypto. They are also in need of

investing in a personalized and consistent communication strategy when training employees and

relationships with customers, to grow their brand awareness and gain trust with established and

new customers.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 3

Current Marketing Situation

Comerica Bank is one of the leading banks in the United States. It is centered around the

arrangement of reasonably affordable financial help to their clients. The progressions in the

financial sector have driven the formation of new contenders that undermine the long-standing

performance of the bank. The capacity of the bank to hold its position is dependent upon the

capacity to convey its seriousness, competitiveness, and benefits that will be provided to the

customers from the use of Comerica’s services. It ought to likewise have the option to look at its

execution of strategy with that of different banks in the area and show their distinction. New and

inventive products additionally must be included for the promoting all together for the bank to

come up with the best deals. Inventive products ought to make value for the client so the

individual in question will actually want to stay in the commercial bank as opposed to moving to

the newer banks. The manner in which the bank position itself will decide the progressions that it

has a triumph in the area. This showcasing plan is to reaffirm the position that the bank at present

possesses. The prospects that are introduced by the coming of the web and versatile banking

should be used to guarantee that the extent of activity of the bank is held. The endurance of any

bank is subject to how it will take up the financial innovation and coordinate it into the typical

frameworks that make up its legacy. Comerica bank is centered around the coordination of the

advancements while holding the client support that makes up its legacy.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 4

Market Description

The financial business all around the world is confronted with the reputational harm that started

in the worldwide monetary crisis. A harmed notoriety has prompted the improvement of

passionate promoting efforts focused on the rebuilding of the public confidence in the bank and

the powerful advancement of more steadfast client bases. Client center focus has been taunted as

the only hope these banks have is to secure their clients first before they are reeled into different

banking institutions (Client driven tasks must be planned by unique necessities of the clients.)

The fate of the financial businesses is reliant upon the capacity of the individual banks to address

the issues of the clients. The intricacies of the client’s needs have made it vital for the banks to

fully prepare for the improvement of new tools that facilitate the comprehension of the clients.

All banks should think of the frameworks that foresee client needs and meet them in the best

way. Banks that won’t fulfill the standard needed by the clients won’t be functional since the

danger of going bankrupt from their rivals will definitely increase drastically.

Product Review

Comerica offers several financial services including corporate banking, personal finance, and

wealth management. Corporate Banking Products and Services include Cash & Investment

Management, Capital Structure, and Employee Benefit Solutions & Services. Cash and

Investment Management services include cash management, access to the online money market

portal, active investment management, and passive investment management. Capital Structure

services include investment banking, debt capital markets, equity capital markets, and corporate

buybacks. Employee benefit services include retirement plan consulting, passive investment

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 5

services, custody services, securities lending, insurance for business, collective investment funds

(CIFs), and captive insurance. Personal Finance products and services include IRAs, Education

Savings (529 Plan or Coverdell Education Savings Account), and Brokerage Services. Comerica

also offers checking and savings accounts, web and mobile banking, and credit cards. Wealth

management services include developing a comprehensive wealth plan that optimizes individual

investments to a more “strategically integrated plan” (comerica.com). Comerica offers wealth

expertise, customized lending, credit cards with rewards, and banking solutions. Comerica does

not currently offer the trading of cryptocurrencies, but offering the option in the future could

provide a competitive edge.

Competitive Review

Comerica’s largest competitors are a mixture of large and smaller financial institutions. Many of

the larger banks focus much of their business on already established corporations, leading them

to neglect other business opportunities and not meeting the needs of the market.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 6

1.) Wells Fargo’s current assets are 1.77 trillion and they currently have more branches than

any other bank in the US, and they are the 3rd biggest American bank. They offer mobile

and online banking, and have just introduced a savings app in an attempt to appear to a

younger market. They focus on deepening relationships with their customers, success

within their operations and sound risk management. “Wells Fargo’s competitive

advantage stems from cost advantages and customer switching costs in its core banking

operations–which provide a vast majority of profits–and switching costs and intangible

assets in wealth management.” (Compton) In an attempt to increase their revenues they

introduced and “introducing ill-conceived incentive programs for front-line employees”

and they are in the midst of needing to mend relationships and gain trust again within

their market. (Compton)

2.) Bank of America is the second largest bank in the US currently serving about 66 million

customers with assets of $2.32 trillion. Their biggest advantage in the market is their

focus on innovation and ability to offer technology that enhances their customers’ online

experiences. (Compton) Their target market is rich individuals as well as large

enterprises.

3.) Charles Schwab just recently bought TD Ameritrade, and is an image of where the future

of banking is headed. Though they are not currently at the top of the banking industry,

their advancement in technology and investment in Crypto, could put them in a position

to be a major threat to Comerica. They are a reminder in the market that things are

progressing and companies have to stay on top of their technology in order to stay in

competition.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 7

Distribution Review

Comerica primarily uses branch banking, where all banking operations are carried out in one

building. Comerica also utilized mobile banking, ATMs, self-service banking, and internet

banking as the main distribution channels. With branch banking,

customers can have all of their banking needs taken care of at one

location. Mobile banking services allow customers to utilize the

Comerica banking app and text banking to easily manage their

account. This app is readily available on the Apple app store,

Google play store, and many other platforms. The app averages

2.5 stars on the app store, so Comerica needs to develop an

updated and more user friendly platform. Automated Teller

Machines (ATMs) also allows 24 access to funds. Comerica can

provide the following services by using ATMs: cash withdrawal,

cash deposits, balance enquiry, providing mini statements, deposit

cheques, and fund transfers. Self-service banking also provides

maximum convenience for

customers, where

customers can perform

routine banking functions

at home.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 8

SWOT Analysis

STRENGTHS

● Establishing dominance in cutthroat
market with in fact their use of people
centric strategies

● Strong Distribution Network, that
allows the company to tap into and
reach the majority of the potential
market.

● Highly diversified clientele, and
employee base to represent their
customers, which in tale gives a slight
immunity in hostile times of banking.

WEAKNESSES

● Comerica has great products and also
great sales, the problem is the
marketing of the products. Its situating
and one of a kind selling suggestion
isn’t clearly characterized which can
prompt the attacks in this category
from the contenders.

● R&D in comparison to competitors
and growing players in the market
place is beyond dwindling. Comerica
spends above the national average for
R&D but yet does not see any sort of
outrageous Innovation.

● Online presence/website

OPPORTUNITIES

● New technology and government free
trade opens up doors for comerica to
venture out into emerging markets.

● With newer technology COMERICA
can also open up doors to
differentiated pricing in the existing
cutthroat market entail growing the
market dominance.

● With Cash in reserves and free cash
flow, the doors open to investments
through new products, services and
new technologies.

THREATS

● Newer and better technologies
developed by the competitor would
bring serious threats to the industry in
the mid to long term of the financial
future of COMERICA.

● Shortages of the knowledgeable
workforce in some global markets
may be a cause of threat to steady
growth of profits for Comerica of the
markets in talk.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 9

Objectives and Issues

Comerica’s main issue is keeping up with competitors in regards to their online banking, social

media presence, and marketing strategies. Comerica has little to no social media presence and

lacks a virtual community. Competitors are established on platforms such as Instagram, Twitter

and LinkedIn with a follower count of at least 100k to around 500k. Comerica has around 2000

followers on each of these platforms and has not been verified on any of them. This is an issue

because Comerica is not taking advantage of these free platforms where they can share valuable

information and invite new clients.

The next issue Comerica is facing is their outdated fintech; their dashboards, websites, and

applications are dull and uninviting. The banking industry is shifting to cater online services

rather than services provided in physical locations. Competitors’ banking apps and websites are

much more inviting, aesthetically pleasing, and user friendly. Lastly, Comerica’s main marketing

strategy is word of mouth; Comerica has a refer a friend special where when you invite a friend

and they set up an account you both get $50. Other than that Comerica uses old marketing

techniques that aren’t as effective as today.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 10

Comerica’s objectives are to fix their web and mobile banking and their social media/online

presence. Comerica can set aside a budget to hire new fintech, social media, and marketing

teams. These teams must be able to fit Comerica’s core values and also revamp and modernize

Comerica’s overall brand. Another objective for Comerica is to understand and monitor the

crypto currency market, as it is a new and growing market with potential in the future.

Marketing Strategy

Comerica for the most part since the creation has always been more word of mouth than

anything. Getting into crypto will bring much needed capital to the company. Getting the

customer base and or educating the already comerica clientele is the main struggle. To combat

this, they should use ads to promote as a way of attracting the needed customer base and also

using the word of mouth of the service to attract the already veteran clientele of COMERICA.

Taking a deep dive into the ad sense of comerica we’ve realized it’s very unattractive and just not

of this generation which is the best way of putting it. The most significant strategy would be to

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 11

get the employees well trained on the crypto aspect and getting newer employees who are well

trained and licenced on the crypto field to also train the already veteran employees on

blockchain. The basis of this is as if you are going to invest with me but I as a banker offering

crypto am not able to explain what it is and how it works, then the investment is just not fruitful,

and you as an investor will not find the need to invest in the field.

Positioning

Comerica ranks 36 for total assets under management and is one of the largest commercial banks

in the US (mx.com). Comerica differentiates itself through wealth planning by offering a variety

of services. These services include strategic wealth planning for wealthy individuals, families,

and high-net-worth business owners. This strategic wealth planning process includes planning

the estate settlement process, wealth preservation, giving back to the community, special needs

trusts, and management of financial assets. Comerica helps affluent clients with strategic asset

allocation for long term investments. Because other banks have started to implement trading

cryptocurrencies, Comerica could position crypto as an investment for the future.

Product Strategy

Because the financial world has experienced immense change in the past few years, Comerica

needs to keep up with the times and implement cryptocurrency as a part of strategic wealth

planning. Comerica could offer wealth management clients with higher risk tolerances the

option of trading cryptocurrencies. This would involve implementing an extensive employee

training program, in order to provide consumer education and establish trust with the client.

Crypto is becoming a clear choice for investors building a “long-term portfolio”, with many

experts recommending holding “5% to 15% of your portfolio in high risk assets like bitcoin”

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 12

(Reinicke). Over the past 10 years its on record that bitcoin and many other cryptocurrency

assets have outperformed the S&P 500 and leads with a 9,150,088% return in the past 10 years,

investing $100 dollars 10 years ago would have you sitting at $10,000,000 now.

“HowMuch.net, a financial literacy website”

Pricing Strategy

Comerica uses a market based pricing strategy; Comerica’s accounts’ fees and thresholds are

similar to competing banks. Checking accounts range from their Access, Rich Rewards, Premier,

and Comerica Platinum Circle Checkings. The Access checking has a $13 monthly service fee

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 13

and target balance of $1000, Rich rewards has an $18 service fee and $5000 target balance,

Premier has a $22 service fee and target balance of $7500, lastly the Platinum Circle Checkings

has no service fees but has a target balance of at least $50,000. Each account has their own

benefits such as interest rates, free products, rewards, and of course ways to waive the monthly

service fee. For the first 12 months, users of Comerica’s web banking will be free, after which

there will be a monthly fee of 6.95. With the roll out of Comerica’s new online banking platform

Comerica should keep the monthly fee however waive fees monthly based on the amount of

activity on their platforms. If clients use their online/mobile banking at least five times a month

the fee shall be waived.

Distribution Strategy

Comerica utilizes many distribution channels to deliver banking services. New technology needs

to be implemented in these channels to enhance the customer experience and improve current

systems. Comerica needs to get with the times and update their mobile app. After revamping the

mobile app, Comerica should promote the convenience factor and establish trust with potential

clients with social media campaigns and advertisements. Offering cryptocurrency would also

give Comerica a competitive edge in the marketplace, and partnering with a platform that

provides cryptocurrency would be advantageous to Comerica. For example, if Comerica partners

with coinbase, customers could purchase cryptocurrency in Comerica’s online wealth

management online portal. In order to do this, Comerica would need to implement extensive

employee training programs. These programs would allow employees to communicate the long

term benefits of investing in crypto and provide adequate consumer education. Partnering with

coinbase would give Comerica a revitalized image, and position the firm to deal with the

demands of the future.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 14

Communications Strategy

The financial industry is incredibly competitive because it is a market in which there is an

established need for and everyone banks with someone. It is important for all banks to keep in

mind as their company “modernizes and transforms, ensuring each customer interaction offers

value by adhering to the essential attributes of providing quality, personable, and actionable

guidance communications.” (Beatty) Comerica needs to quickly build more brand awareness and

this can be done through advertisements, social media presence, personal relations, strategic

locations, etc. Comerica bank wants to focus on a communication strategy that is customer

oriented and building trust between their business and the customer. This can be best achieved

through “timely and meaningful communications with customers” fully transparent and

personalized for each person. (Beatty) It will benefit Comerica greatly to ensure that they have

communicated to their customers that they can offer them what they need, and that they are truly

trustworthy and then really push them to do banking with Comerica. With the introduction of

Crypto into our business we need to also ensure we have intentional training with our employees

and know that they are confident so they can ensure they communicate effectively with

customers and gain their trust when it comes to this new form of banking. Having a celebrity

endorsement, or a face of their company, someone like Mark Cuban, would raise awareness of

Comerica as a strong competitor in the industry and attract more customers. They could also use

smaller influencers such as financial help Youtubers or bloggers that are also in the industry and

knowledgeable about new technologies such as crypto to also build up customers’ trust in the

industry.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 15

Marketing Research

To ensure the roll out of the new online and mobile interface is effective, Comerica must do

extensive market research. The first method of this will be requesting a rating on the Apple App

or Google Play store. Currently on the app stores Comerica has an average of 2.5 stars, which is

terrible. Comerica should monitor their rating and listen to the reviews given. Comerica should

also monitor which clients enroll in online banking and consider their demographics. This will

give Comerica a better understanding on who is open to their online services and who isn’t. That

way Comerica can then focus on those who aren’t open to online banking and figure out the

reasons why. Next Comerica should track what services are being used the most, they can do this

by tracking the usage of a given

service. For example monitoring

how often Comerica’s clients

send and receive money with

zelle. Tons of customers send

money with zelle, so it would be

important to have that feature on

the app and conveniently

located.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 16

Marketing Organization

Comerica utilizes a customer-oriented organization structure. In order to execute the

previously mentioned marketing activities, Comerica needs to put the customer first and help

customers meet their goals. One of the most important things to implement this approach is

providing excellent employee training. If employees believe in the benefits of the products

Comerica offers, the employees can provide consumer education and establish trust with the

customer. To implement new programs involving the trading of crypto and development of a new

mobile app, employees need to be properly educated on how to use these new platforms.

Understanding the customer is also integral to execute these marketing activities, which can be

done through extensive market research and listening to the customer. This also provides

incredibly useful feedback for Comerica to continually improve these programs and keep up in

the ever changing financial world.

Action Program Metrics

● Quarter 1, 2021: Work on internal analysis, building up a new brand, focus on the future

and developing their technology, building a culture up with their employees/training and

ensuring all employees are educated on all changes to help guide customers.

● Quarter 2, 2022: Roll out revamped app to DFW area for testing. Increasing their online

presence with social media marketing campaigns. Focus on making the website and app

more user friendly.

● Quarter 3, 2022: Celebrity endorsement to boost image, give Comerica a face, and

portray Comerica as more “leading edge”.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 17

● Quarter 4, 2022: Launch the revamped Comerica banking app and introduce viewing of

Crypto in the wealth management portal.

Pro Forma Budgets/Financials

Comerica will have to make a large financial commitment to hire the appropriate teams needed

to help with the rebrand, because of this we will set budgets on how much we can spend a year

on our teams. For app developers, our annual budget is no more than $600,000. For our social

media marketing team our annual budget is $400,000. Lastly our annual budget to hire a new

marketing team will be $1M. Total this plan will cost Comerica roughly $2M for the entire year.

With that being said these costs are rather rising on a year to year basis, so commitment is

needed, nonetheless the time and effort.

Additional Controls

With all of these changes Comerica must add additional controls to ensure they are following the

plan. Comerica will monitor customer satisfaction when it comes to feedback regarding online

and mobile banking. Comerica will also need to monitor budgets and spending. Lastly, Comerica

will need to monitor product and marketing development. After hiring the new marketing and

development teams, Comerica should have a steady increase in production and with the

monitoring of engagement through ad sense and incorporating this information with revenues

Comerica’s marketing team will have the insights to which they either increase advertisement

budgets or decrease.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 18

References

Beatty, Andrew. (2019, March 14). Banking modernization: Is it a communication
breakdown? Finextra Research.
https://www.finextra.com/blogposting/16810/banking-modernization-is-it-a-communicatio
n-breakdown.

Compton, E. (2019, February 6). Wide-moat wells fargo worth a look. Morningstar, Inc.
https://www.morningstar.com/articles/911365/wide-moat-wells-fargo-worth-a-look.

Goldberg, M. (n.d.). These are the 15 largest banks in The US. Bankrate.
https://www.bankrate.com/banking/biggest-banks-in-america/.

Reinicke, C. (2021, July 29). Cryptocurrencies can be a tool for building personal Wealth
long-term. CNBC.
https://www.cnbc.com/2021/07/27/cryptocurrencies-can-be-a-tool-for-building-personal-w
ealth-long-term.html.

Juan Carlos Editor, Carlos, J., & Editor. (n.d.). The Investment of the Decade: Bitcoin vs.
World’s Megacorps. Retrieved from
https://howmuch.net/articles/biggest-companies-vs-bitcoin-last-decade-performance

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 19

A major component for this course will be the Marketing Plan which is the final exam/project for this course and will be due the last nights of class (Plan, April 17 – Video, May 3).  You have been thinking and working on this assignment with the official proposal.  This proposal helps to define the target product or service for you and the client.  This proposal has been reviewed by your instructor who can also provide insight and direction on how you can best complete you overall project.

You are working as if you in an internal marketing department, or external strategic consulting company on a “real world” case.  You  will need to gather information to assist with the creation the marketing plan by developing the outline in Project 5.1. Here are a few areas for you to consider to build your plan.

· Marketing and digital engagement

· Communications and public relations

· Strategic planning and business development

· Consumer relations

This assignment is one of four parts to the marketing plan project: the proposal, an outline, this presentation document, and your video presentation.  Your final assignment submission for this marketing plan should be in a finished format that you be suitable for presentation to the client.

This project is part of the Core Assessment for the course:

Core Assessment Objectives

1. Students should be able to understand and implement analytical tools used in marketing strategy practice.

2. Students should be able to develop a marketing strategy.

3. Students should be able to integrate knowledge of marketing management practices and decision-making practices to make sound marketing strategy decisions.

4. Students should understand the implications of marketing in a service-oriented environment and meeting client expectations.

5. Students should understand the complexity of solving marketing problems that are unique to healthcare and its many facets.

Samples from previous classes are available here.

Company

Notes

Executive Summary

A sustainable increase in sales revenues is very important for the continuous growth of Sephora. Sephora is a makeup retail store distributing beauty and cosmetic products to customers.

Current Marketing Situation

Sephora delivers quality products to customers. Currently, the company markets its products through mobile and web platforms, blending online and in-store experiences. Social media platforms are also used in marketing company products.

Market Description

Sephora supplies beauty and cosmetic products for both girls and women and men.

Product Review

Sephora is recognized for high-quality beauty and cosmetic products across the globe.

Competitive Review

Major competitors of Sephora include Ulta, Nordstrom and Mac

Distribution Review

Sephora distributes its products to customers mainly through retail stores, the company’s online website and the Outlet inside JCPenney.

SWOT

Strengths

Wide range of products such as perfumes, skincare etc

Many stores in different countries

High interactive company website.

The high value of the Sephora brand

Weaknesses

The selection for men’s skincare, moisturizer and cologne is very limited.

Low penetration in Asia

Opportunities

Opportunities to increase line products for men.

Opportunity to enter the emerging economies of developing countries.

Threats

Increase in competition from MAC, and Calvin Kleins, among others.

Change in customer preference in selecting products.

Objectives and Issues

Increase men’s section collection

.

Marketing Strategy

Positioning

Sephora positions itself through the Affordable pricing of the products and ensuring high-quality products.

Product Strategy

Increase men’s section collection

Pricing Strategy

Affordable pricing strategy

Distribution Strategy

Supermarkets, gift shops, websites

Communications Strategy

· Printing advertisements in fashion magazines targeting young people.

· Famous male celebrities wearing our new products are getting displayed on billboards.

· Post on Instagram and TikTok to make customers aware of the cosmetic products.

· Billboards, radio, email, and social media platforms.

Marketing Research

Sephora researches on customer convenience to reach the Sephora store through smartphones

Marketing Organization

Use Data driven strategy to understand the data across the organization. The data will help to make marketing strategy in the future.

Action Programs Metrics

1st Quarter

Increasing the men’s product line

2nd Quarter

Measure the sale revenue from the new product line.

3rd Quarter

Advertise new products through billboards, TV, and social media

4th Quarter

Design more unique products

Pro Forma Budgets/Financials

Sephora had revenue of over $500 million which means it hold 36% of the market share.

Additional Controls

1.What is your Product, service, or brand?

1. I picked Sephora which supplies beauty and cosmetic products. It offers products to girls and women. However, it doesn’t have various product options for men. The selection for men’s skincare, moisturizer and cologne are very limited. I would like to increase men’s section collection.

1. The target consumer are girls and women, and it uses B2C marketing strategies. The prices are in various range for a wide variety of customers. It offers more than 250 branded products and its own brand as well.

2.Competition

1. The three competitors are Ulta, Mac and Nordstrom.

1. The product is distributed through retail stores and company online website, and it also has outlet inside JCPenney where they sell their products to the customers.

3.Media selection

1. Printing advertisement on fashion magazines targeting young people.

1. Famous female celebrities wearing our new products getting displayed at billboards.

1. Post on Instagram and TikTok to aware customers about the cosmetic products.

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