Justification Plan

Table of Contents

Executive Summary4

Introduction5

Situation Analysis5

Competitive Situation5

SWOT Analysis5

Strengths5

Weaknesses5

Opportunities5

Threats6

Product Life Cycle6

Establishing a Sustainable Competitive Advantage6

Objectives and Strategy6

Sales/Market Share7

Profit7

Product Range7

Exporting7

Maximizing Customer Service7

Marketing Strategies7

Product8

Price8

Promotion8

Place9

People9

Target Markets9

Product Differentiation9

Market Segmentation10

Geographic10

Demographic10

Behavioral (Product related)10

Psychographic10

Implementation, Monitoring and Controlling10

Implementation10

Monitoring10

Control10

References12

Appendix13

Executive Summary

This is a recommendation plan relating to Foxon Co, which is planning to distribute a new line of shoes (Blaze), throughout Australia. The footwear Foxon Co. will be providing shoes for sports club members, sporty individuals and students. Initially Foxon Co. will be selling Blaze shoes in different renowned and independent (non-affiliated) sport stores in Perth and then in the second phase it will be made available in stores across Australia. Items which are incorporated into this plan include:

A situational analysis which incorporates a product lifecycle and the competitive advantages of the business

Marketing objectives and missions of the business

The target markets that Foxon Co. is directing their new line towards

The marketing strategies that will assist in launching the new line. These strategies will be operated during the lifecycle of the business

Implementation, monitoring and controlling of the marketing plan

A projected income statement for 2011/2012 based on the provided data

Introduction

Foxon is a wholly-owned Australian company headquartered in Sydney. Founded in 1950, it started as a small firm contracted to manufacture basketballs, soccer and rugby balls for a multinational company. In 1970, it gained independence and began using its accumulated experience to manufacture and sell basketballs, soccer and rugby balls under the Foxon brand name. The brand soon gained a national reputation for its durability and, therefore, is the number choice for training use and in schools. The quality of its sports balls is equal to any other top-brand products but was never the official game ball because it had never won any contract to supply sports balls for major national competitions (leagues) (Johnson & Scholes, 1997).

Foxon is planning to enter into the sports footwear industry and has contracted a South Korean manufacturer of sports footwear. The proposed name of the brand is “Blaze” which will be a top of the range footwear, targeting sports clubs and schools.

Situation Analysis

Competitive Situation

Presently there are numerous footwear companies in Australia. Therefore Foxon will not have a monopoly of the market. The survey which was carried out recently showed that the preferred brand of footwear for unspecified sport was Nike followed very closely by Adidas. Other brands mentioned were Reebok, Puma, Converse, Asics and New Balance. The competitors of Foxon are situated Australia wide and can be bought in leading shoe outlets

SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. SWOT analysis of Foxon. Co is given below (Johnson & Scholes, 1997):

Strengths

Major strengths of Foxon.Co include:

Large market

Number one choice in basketballs, soccer and rugby balls

National reputation for its durability

Financially stable

Sells quality product and therefore will be reliable

Weaknesses

Some of the key weaknesses of Foxon ...