Mr. Phillip Winter, the CEO and Co-founder of Nebia has just hired you to develop a
marketing plan on how to penetrate UK market with Nebia’s innovative shower system.
Details about Nebia shower system (functionality, features, design etc.,) can be found on
www.nebia.com. Nebia, originally an American company, has established its branch in
the UK and has already licensed a manufacturer named QPS Ltd to produce shower systems
for them. To make and deliver one shower system to their warehouse, QPS will charge
Nebia £106. This price is expected to remain at the level for the output capacity of the QPS
factory which is at the moment 300,000 shower units per year. The UK based branch of
Nebia rents office sand a warehouse in Oxford at a rate of £13,00oper calendar month.
There are 18 members of staff at the moment-12 sales representatives each salaried at
£41,500 per year, 3warehouse workers each salaried at £19,500 and 3 members of
management board each salaried at £68,500 per yea r. So far Nebia, has invested a
total of £175,000 in staff training, office equipment and customer relationship
management software. Nebia does not have its own distribution fleet. Indirect overheads
are projected at£50,000 for the first year. Nebia does not own or rent any retail stores.
Technical details aside, Nebia has high expectations from you. Your marketing plan and a
proposed set of marketing actions should, upon their implementation, result in a positive
financial result. It is also expected that Nebia becomes a well-known and highly reputable
brand in the UK. Having this in mind, Mr. Winter and his management board have many
questions. In an email sent to you they say: ”we want to have a clear picture of UK shower
market. We want to know what is the market potential with respect to shower systems?
What are the opportunities and threats we should be aware of? Who are our competitors in
the UK? What are their marketing strategies? How are they positioned? What is the
attainable set of marketing objectives we should achieve in the first year? What different
types of potential buyers/consumers for our product do exist? What are their
characteristics? Which market segment(s)are most attractive for targeting? Why? How
should we position our brand? How should we go about our marketing strategy given the
identified circumstances? What pricing strategy should we apply and what price should we
charge? What is the best way to distribute our shower systems? How to go about
promotion? How much do we need to sell and at which price to achieve the break-even?
What level of sales and projected net profit can we expect in the first year based on your
plan? How to keep sales team motivated and willing to go an extra mile for each potential
and actual client? What are the best ways to monitor and control implementation progress
of your plan? How much of the marketing budget do you expect to use for the proposed
marketing activities?”
