Out and About Plc Essay

2070 Words Feb 28th, 2011 9 Pages
Business report – out and abut plc

Introduction

Out and about plc have appointed a new chief executive Lisa Coates who has proposed a new marketing plan to enable the business to achieve a rapid improvement in profitability. A marketing plan is a report outlining a firms marketing objectives, strategies and tactics including costing, timings and forecast results. It is part of a businesses overall corporate plan and should take into account the businesses corporate objectives, its internal capabilities, external opportunities and threats. Out and about plc must decide whether this new plan should be adopted.

Case for out and about plc’s proposed plan

The new proposed plan could lead to an increase in profitability due to the
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However this means that there may be little competition so out and about plc could potentially dominate the extreme sports market and be able to establish a strong brand image before the niche attracts other companies. Also because it is a smaller market out and about plc will be able to have a better focus on the consumers needs and respond quickly to changes in theses needs which will result in satisfied customers and higher volume of sales.

Case against out and about’s proposed plan

The new proposed plan for out and about is initially high risk. The company will be diversifying into a new market which according to ansoffs matrix is high risk.
The company will be changing its target market to16 – 30 year olds which could be a problem for the business as out and abouts current loyal customer base is middle aged or retired. It may be harder to gain the young customer base as out and about plc is associated with older people which means more money may have to be spent on marketing to project the new ‘younger’ image of out and about to the customers as only 15% of 21-30 year olds are aware of out and about plc compared to 85% over 55. Also Targeting a younger audience

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