Marketing plan created by alana kaveh joshua and vlad
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Marketing Plan created by Alana, Kaveh , Joshua and Vlad. Decoline. Intro + cause of problem Problem Identification Product identification Research and findings SWOT Alternatives Solution Implementation Sales Projection Course concepts References. Agenda.

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Marketing plan created by alana kaveh joshua and vlad

Marketing Plan created by Alana, Kaveh, Joshua and Vlad



Intro + cause of problem

Problem Identification

Product identification

Research and findings





Sales Projection

Course concepts



Introduction relating to problem cause

  • Received Request for Proposal (RFP) from Bryant Inns for a new product.

  • Diana Cromwell, the purchasing agent for Bryant Inns indicated a dissatisfaction with the short service life of their vinyl/paper based wall coverings that are made of foam and have a product life of only 2 years. Her requests for Decoline include:

    • Sound proofing

    • Stain resistant

    • Meet safety requirements

    • Fire resistance

    • Design attractiveness

    • Durability to withstand high traffic areas

Introduction relating to Problem cause

Problem statement

What pricing strategies should Canty International employ to establish a selling price for the Decoline panels to its current customer and to new markets

Problem statement

Product information

  • Decoline – A semi-rigid decorative fabric panel product.

    • Techno-fabric covering and bamboo fiber core

    • Abrasion resistant and soil-proof

    • Specially treated for fire resistance

    • Effectively filters sound

    • 10 year lifespan

product Information

Monthly fixed costs

Monthly Fixed Costs

Variable costs

Variable Costs

Break even costs

Break Even costs

Total Cost = Total Fixed Cost + Total Variable Cost (Number of units)

Break Even Price = Total Cost / Number of Units

Competition price

Competition price

100.67/ roll

100.67 / 5.2 = $19. 36/ m²

This price does not include installation

Value based price

Value perceived by consumer based on competitors price

19.36 m² x 5 years = $96 m²

Value perceived by consumer based on CI’s previous product

11.50 m² x 5 years= $57.50 m²

(Installation costs not included)

Value based price

Target market identification

The target markets for Decoline are hospitality and construction industries along with government institutions; however the current focus of this project is Bryant Inns

Target market identification

Target market

target market


  • Construction

    • Interior Design Companies

  • Government Institutions

    • Government-run daycare

    • Hospitals

    • Schools

  • Hospitality Industry

    • Hotels, resorts and motels


  • Will be nationwide, with focus on local markets.


  • Organizations that pride themselves on high self-image


  • Organizations creating long-term relationships with suppliers as well as striving for social status in the corporate world

Internal strenghts

Established strong reputation for quality and service.

Strong consumer relationships

Innovative products

High Quality Standards

Cost Advantages

Low lead-time on materials (2 weeks)

Internal Strenghts

Internal weaknesses

Canty International currently runs at only 77% of optimum production Capacity.

Lack of Patent Protection for new product

Limited production capabilities

Not an off the shelf product. Cannot pre-produce in high quantities.

Internal Weaknesses

External opportunities

Durable products and increasing demand for this particular product.

Canty International with be able to create Patents for new products.

New technology (machines, tools, etc)

Expand beyond hotels into other business with high-level traffic areas.

EXTERNAL Opportunities

External threats

Unstable economy- Recession

Changing consumerDemand

Copywrite abuse from competitors

A new superior product created by our competition at a lower price.

External Threats


  • Market Penetration Pricing

    • value Based Method

  • Price Skimming

    • Cost Based Method

  • Market Penetration Pricing

    • Cost Based Method


Penetration pricing using value based method

  • Adding a per cent mark-up to the cost of the product

penetration pricing using Value based method

Market penetration pricing

  • Advantages

    • Easy to calculate

    • Minimal information requirements

    • Easy to administer

    • Ethical advantage

  • Disadvantages

    • Doesn’t recognize the role of consumers and competitors

    • Has to assume costs do not vary at different levels of production

    • Set on estimates of average costs

Market Penetration Pricing

Price skimming using cost based method

Higher price point to maximize profits from Early Adopters

Price Skimming using cost based method

Price skimming

  • Advantages

    • High price signals high quality

    • Recoup R&D costs early

    • Flexibility in future price setting

  • Disadvantages

    • High unit costs associated with low unit production

    • May encourage competition

    • Slow rate of adoption

Price skimming

Market penetration pricing1

  • Introduce the new product at a low initial price to build sales, market share, and profits quickly.

Market Penetration Pricing

Market penetration

  • Advantages

    • Build market share, sales and profit quickly

    • Attracts early adopters

    • Sales continue to grow as costs drop

  • Disadvantages

    • May not have capacity to satisfy demand

    • Low cost does not signal high quality

    • Does not maximize potential revenue

Market penetration


  • Client - Bryant Inn and New Markets

    • Price Skimming using the cost based method.

      • Start at the highest value perceived by consumers

      • New product on the market

      • High quality

      • Price changes


Bryant s inn implementation

Bryant’s inn implementation

  • Product - Decoline

    • Fire resistant

    • Durable

    • Sound proof

    • Withstand hotel traffic

    • Meet safety requirements

    • Provide 10 year warranty

  • Price

    • Value Based Price Skimming

    • 73.98/ms for 500 ms

    • Cash Discounts

    • Cumulative Quantity Discounts

Bryant s inn implimentation

Bryant’s Inn implimentation

  • Place

    • Uniform delivering price will be offered

    • Create an effective distribution channel

  • Promotion

    • Have a visible logo on the finished product packaging

    • Installation trucks with clearly visible Canty Int’l logo

Plan of action target markets

  • Product

    • Durable

    • Fire resistant

    • Attractive

    • Sound proof

    • Low maintenance

    • Meet industry safety requirements

    • 10 year warranty

Plan of action – target markets

Plan of action target markets1

  • Price

    • $73.98/m2 for 500m2

    • $47.04/m2 for 2000m2

    • $45.24/m2 for 7500m2

    • Cash Discounts

    • Cumulative Quantity Discounts

Plan of action – target markets

Plan of action target markets2

  • Place

    • Create contracts with transportation and delivering companies

    • Urgent delivery system

    • Create own distribution system

Plan of action – target markets

Plan of action target markets3


  • Increase product awareness

    • Trade shows

    • Market presentations

    • Cold calling

  • After generating leads, send sales reps to introduce the product and generate sales.

Plan of Action – target Markets

1 st year sales projection

  • At 500 m2 per month

    • $73.93 x 500 m2x 12 = $443,580.00

  • At 2000m2 per month

    • $47.04 x 2000 m2x 12 = $1,128,960.00

  • At 7500m2 per month

    • $45.24 x 7500 m2x 12 = $4,071,600.00

1st year Sales projection

Course concepts

  • Value based method

    • Over all value of the product perceived by consumer

  • Cost based method

    • Determining the price based on cost

  • Price skimming

    • Innovators and early adopters willing to pay more for new product

  • Market penetration pricing

    • Setting the initial price low to build sales and gain market share

  • Business to Business

    • Marketing specifically directed to selling products to other businesses

Course concepts


(2009, May). Sweet Home. Retrieved October 31, 2009, from

(Unknown). All Modern Baby. Retrieved November 03, 2009, from

(Unknown). Wall Paper Whole Sale. Retrieved November 03, 2009,

(Unknown). Wallpaper whole Sale, retrieved November 03, 2009


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