Mukta Shah Vedang Shah Rachit Arora

SUMMARY
Harper Manufacturing Increase in sales of 26 % annually for last 7 years. Last year sales declined by 18% and may decline a further 12 % this year . 3 products account for 40 % of sales All of them have lost a huge market share. Cancellation of contract with national retailer and entry of new competitors biggest issues .

REACTIVE PLANNING

Reactive planning is the process whereby future action is dictated as a response to whatever has already, or is now, occurring--- it is "reflex" or "knee-jerk" in nature . Reactive planning is an active attempt to turn back the clock to the past. The past, no matter how bad, is preferable to the present. And definitely better than the future will be. The past is romanticized and there is a desire to return to the "good old days.

FORECASTING

Quantitative methods: These types of forecasting methods are based on quantitative models, and are objective in nature. They rely heavily on mathematical computations. Qualitative methods: These types of forecasting methods are based on judgments or opinions, and are subjective in nature. They do not rely on any mathematical computations.

Quantitative Time Series Model This model which was followed by the company for the past 8 years . Causal Model

Qualitative Executive Opinion Market Research Delphi Technique The last 2 techniques to be followed in near future

WHY WE CHOSE THIS TYPE OF FORECAST :

The degree of accuracy required

The availability of data and information The time horizon that the sales forecast is intended to cover. The position of the products in its life cycle.

THE BUSINESS PLAN

Where are we now? How did we get here ? Where would we like to be? How do we get there? Are we on course to achieve our targets?

STEP I - SITUATION ANALYSIS

Pioneer in growth of market with 26% annual increase in sales Last 2 years showing sales decline 2 products are manufactured under a subcontract with a national retailer 1 product is manufactured in-house and sold to wholesalers Cancellation of portions of sub contract agreements with the national retailer

SWOT Analysis PEST Analysis Competitor Analysis share of market , share of mind , share of heart . Paralysis by analysis

STEP II TARGET MARKETS

Brand equity Identifying niches Market specialization selective , product , market , full coverage User types - 1. Loyalists2. Apostles3. Defectors4. Terrorists5. Hostages6. Mercenaries Usage rate light , medium and heavy Buying decision makers initiators , influencer , decider , buyer and user.

Buyer readiness stages Awareness , comprehension , Conviction , Order , Reorder Loyalty status Hard core loyals , split loyals , shifting loyals , switchers . Adoption process Awareness , interest , evaluation , trial , adoption

STEP III - MARKETING OBJECTIVES

Increase - Sales Volume , Growth Rate , Market Share , Market Penetration Maximize Return On Investment (ROI) Promote Positive Company Image Promote social responsibility Marketing mix

STEP IV & V - MARKETING PLAN

Product positioning Trade promotions Sales promotions Advertising Reminder advertising Market segmentation Price penetration Personal selling Building market share Growth in the other 60% of the product sales

Public relations Focus on quality Product life cycle stages Blanket branding Push strategy New product development Diversifying product mix Product modification from time to time Reduction in profit margin for all 3 products

STEP VI & VII REVIEW & CONTROL

Revenue and unit sales Customer orientation Market orientation Competitor orientation Customer feedback Reviewing performance against the set standards and taking corrective steps if necessary .

CONTINGENCY PLAN

BCG MATRIX

Build Share: here the company can invest to increase market share (for example turning a "question mark" into a star) Hold: here the company invests just enough to keep the product in its present position Harvest: here the company reduces the amount of investment in order to maximize the short-term cash flows and profits from the product. This may have the effect of turning Stars into Cash Cows. Divest: the company can divest the product by phasing it out or selling it - in order to use the resources elsewhere (e.g. investing in the more promising "question marks").