The project named as target market strategy has been selected for the analysis. It is suggested to alter the marketing strategy by starting focusing on people belonging to the age group of 18-35 as it is believed that younger generation is required to undertake the eye health more seriously.
It has been estimated that the total revenue of $713780 would be generated in 2021. A commission at the rate of 2% on the total revenue of the month is also required to be paid in addition to the monthly cost to the marketing agency. It has been estimated that more customers will visit the store after undertaking this strategy and therefore, will increase the sales of sunglasses by the average rate of 10%. This will also lead to the increase in the eyes test performed. Total rent has been calculated as $61632 for the year and wages and salaries of the sales staff members has been estimated as $112000. I-Optometry has been quoted with the monthly expenditure of $10658 that is required to be paid by the company at the end of every month. This gives a total marketing expenditure for the year as $127896. This gives a total marketing expenditure for the year as $127896. The rent for the office premises will cost $15408 per annum. The office staff will be paid at the rate of $4500 per month amounted to $54000 in the year. Optometrists are to be paid at $26000 per month amounting to $312000 per year. Total operating expenses for the year have been projected as $721030. It has been estimated that the company would earn net operating income of $1831763.5 in 2021. Total collection of cash from customers would be around $837130 in 2021. There will be cash outflows on account of rent, salaries of sales and office staff, utilities, bank charges, office supplies, etc. It is projected that the cash balance at the end of December 31, 2021 would be $180160.
The company must ensure good handle on its brand. It must undertake all the appropriate measures that will help in creating awareness with the company’s brand. A survey can be performed among the customers to achieve feedback on the quality of sunglasses and prescription glasses. This strategy will help in developing brand positioning and will enhance the marketing assets. New arriving customers will help in accomplishing growth and long term sustainability of the organization and therefore, can expand its business in new efficient areas where target customers are present (Scott, 2017). The promotion of the brand on social media platforms will help in achieving large amount of traffic on those channels from where the number of customers arriving at the stores will increase and thereby, help in raising the revenue amount. Social media provides the business with the opportunity to build relationships with the target audience (Vinerean, 2017). The followers and connections are considered as the people who are aware about the organization and have likely purchased or used the product offered and are more likely to tell about the same top their known persons. It is also regarded as the cost effective technique than several traditional advertising techniques of creating and raising brand awareness. Also, as under this strategy, it is suggested to target the audience in the age group of 18-35, this younger group can be reached efficiently and effectively with the social media channels.
To achieve success from the above mentioned project, it is important for the organization to have a presence of strong and effective team of management. If the management team is not proficient enough, then it may adversely impact the financial health of the company. It becomes relatively easier to accomplish goals and objectives of the organization when the right management has been placed in the right manner. A management is considered significant in order to develop and grow the business enterprise. With the growth and development of the business enterprise, a management team is also considered essential to spread leadership responsibility (Kurochkina et al., 2019). A single manager cannot have a combination of all the required skills rather, a management team can have that combination. Every member of the team of management can focus on his/ her area of expertise to achieve desired level of output. Moreover, the business will gain advantage by having overall directions and objectives reviewed from distinct perspectives. Therefore, it can be claimed that if the management team is not there, then the business enterprise might not grow and develop with the required pace. The relationship and understanding among the team is important to add value beyond the skills and talents of the individuals.
It can be concluded that the organization must proceed with the above mentioned project as it will help in restoring its profitable position and will help in achieving large customer base. It has been estimated that more customers will visit the store after undertaking this strategy and therefore, will increase the sales of sunglasses by the average rate of 10%. This strategy will help in developing brand positioning and will enhance the marketing assets. New arriving customers will help in accomplishing growth and long term sustainability of the organization.
Vinerean, S. (2017). Importance of strategic social media marketing. Expert journal of marketing, 5(1).
Scott, J. T. (2017). The sustainable business: A practitioner's guide to achieving long-term profitability and competitiveness. Routledge.
Kurochkina, A. A., Voronkova, O. V., Lukina, O. V., & Bikezina, T. V. (2019). Management features of small and medium-sized business enterprises. Revista Espacios, 40(34).
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