Company T is a local company whose main business involves the making of t-shirts.
The company supplies and delivers the t-shirts to its clients in various locations in the country. It sells different types of t-shirts like polo t-shirts and collar t-shirts. The t-shirts made are usually of different sizes and colors. They include small, medium, large and extra-large types of t-shirts. The company specifically deals with two types of t-shirts which are light and heavy.
Last year, a five-year strategic plan was developed. For Company T to achieve its vision as “the most reliable and efficient stationery distributor both locally and internationally”, various marketing strategies were outlined in its strategic plan.
One of the marketing strategies states that the company should target schools as one of its markets. The decision to target schools was informed by the fact that schools can be key consumers of t-shirts. Schools in the country are numerous and they can use t-shirts for different purposes and in different activities. Schools also hold large numbers of students. Company T has embarked on aggressive marketing. It has employed different promotion activities to ensure that its mission and vision are realized. Company T has vigorously engaged in the setup of promotion tools. These include the restructuring of the company’s website to include online marketing through e-mails, Twitter, Facebook, and blogs.
Various marketing consulting firms have been enlisted to help in the designing of promotion materials like caps, pens, t-shirts, and key holders. The marketing consulting firms will also aid in the creation of promotions as marketing strategies. Some of the promotions that are likely to be used are roadshows in different towns and musical extravaganzas in the schools targeted by Company T.
Purpose of the report
The main purpose of this report is to help the management of Company T to control promotion activities using strict budgetary measures, monitor marketing results from the budgeted sales targets, monitor the revenue and costs and the marketing objectives. It is through the evaluation’s summary report that proper analyses of the performance of Company T in terms of marketing can be done. The study will also help us in identifying the best strategies that can be employed by Company T in realizing its mission and vision.
Controlling promotion activities through strict budgetary allocation
The half-yearly total budget is $25500 as compared to the half-yearly actual budget of $14750. The company’s strategy to target schools will be quite effective in the long run taking into consideration that the schools may be the major consumers of the t-shirts. Some schools have different clubs like drama clubs and sports clubs that need to use different types of t-shirts. In some schools, t-shirts are part of the school uniform during certain days like on Fridays. Young people also prefer to put on t-shirts over the weekends and in the evenings as casual wear.
The budget of $1200 allocated for six months to the schools’ promotion activities translates to $7200.
The difference between the half-yearly budget and the actual budget is $10250. This indicates that the budgeted figure of $1200 for schools promotion activities is enough. This shows that Company T can organize more promotion activities especially in schools.
The two charts, i.e. Graph 1 and Graph 2 ,help to analyze what is happening between the actual budget and the budgeted figures. The actual budget is relatively low as compared to the half yearly budget. This shows that adjustments of the figures are not necessary.
Monitoring market results from the budgeted sales targets
The variance indicates that the actual budget sales are relatively low at the beginning of the year and high towards March and April and then decline towards June. The budget sales constantly remain high with May and June reflecting the highest figures. From the six months’ analyses, there is no need to review budget estimates for the next six months.
This can be attributed to constant and aggressive promotion activities over the entire six months period. With this assessment, I can recommend that the management of Company T should improve on promotion activities.
Monitoring the revenue and costs
From the actual sales, the month of December performed very well as compared to other months and the month of June recorded the worst performance. From the variance, the month of March recorded a performance that was close to the budgeted figure. The company realized profits throughout the whole year. The month of December posted the highest profits. The second half of the year had the better performance as compared to the first half of the year.
Monitoring Marketing Objectives
Company T decided to carry out an online survey to find out the prices of the t-shirts charged by its key competitors in business. For its research, it identified two companies. It found out that these companies offered a wide range of t-shirts as compared to what Company T offered. Currently, prices of t-shirts of Company T are relatively high as compared to the prices charged by its competitors for the same products.
One of the companies has a very standard web site with very clear graphics. The website has graphic rotators in the home page which display different t-shirts after a few minutes. This ensures that online visitors to the website can be able to see the products available for sale in an entertaining way. The website also contains links to enquiries and blogs to enable customers of the company to make comments about the offers.
Company T decided to consult two friends who are likely to be potential clients. Each of them recommended for an overhaul in the website of Company T. Quality improvement in terms of quality graphics, layouts, additional links and blogs was recommended.
Since one of the marketing strategies was to target schools, online marketing should then be given a higher preference than other ways of marketing. This is because schools are mostly comprised of young people. Most young people today have access to the internet. With internet tools like e-mails, Twitter and Facebook, Company T can reach a wider market within a very short time. Online sales’ features can also be included in the website to boost online sales.
Pricing should be given a major priority too. Slight changes in the prices of t-shirts to match the prices of its competitors can make a lot of difference in the sales of Company T. The quality of products should not be compromised even when the prices are adjusted.
Distribution channels should be improved. The company should think of partnering with various institutions all over the country to serve as their distribution partners. This will reduce the cost of opening branches for the distribution of t-shirts for Company T.