Lee Valley Tools: Marketing Plan for Management - Entrepreneurship

This report presents a comprehensive marketing plan for Lee Valley Tools, a leading tool manufacturer in Canada, focusing on their potential expansion into the rotary sharpening tool market. The analysis includes an assessment of the company's internal environment, identifying strengths such as expertise in selling and marketing tools and weaknesses such as limited experience in manufacturing sharpening tools. The report explores competitive advantages through cost leadership and product differentiation, detailing consumer buying decisions and segmentation strategies targeting specific demographics in Tier I cities in Canada. Furthermore, it outlines a positioning strategy emphasizing affordability and customer value, a proposed CSR strategy centered on customer education, and a customer relationship management approach utilizing point-of-sale data and loyalty programs. The marketing mix strategies cover product specifics, sales-oriented pricing, promotional activities including advertising and public relations, and retail channel placement. The plan aims to enhance Lee Valley Tools' market presence and customer engagement.

Marketing and
management

Introduction
 It is becoming important for the organizations to
initiate distinctive to stay ahead in the market.
 Lee Valley Tools are one of the leading tool
manufacturers in Canada.
 They specialize in domestic gardening tools and
woodworking tools.
 Lee Valley Tools were set up in 1978 in Ontario,
Canada by Leonard Lee

Cont.
 Currently they mainly cater to the domestic
consumers.
 It is proposed to manufacture rotary sharpening
tool.
 This will help them to cater to different
customers segments.

Determination of the
internal environment
 Strengths
 Lee Valley Tools are having expertise in
selling and marketing tools.
 Lee Valley Tools are having favorable
marketing penetration in Canadian market.

Cont.
 Weaknesses
 Presence of number of global brands.
 Lee Valley Tools are not having expertise in
manufacturing sharpening tools.
 They are more oriented to Canadian market
that will restrict their market potentiality.

Cont.
 Opportunities
 Entering in the global market especially in
developing market.
 Development of economy.

Cont.
 Threats
 Economic recession
 Introduction of more sophisticated and
sustainable products.

Sources of competitive
advantages
 Cost leadership
 Cost leadership will be followed in order to stay
ahead in the competition in terms of the price.
 Cost leadership will be maintained by initiating
lean manufacturing.

Cont.
 Product differentiation
 Product differentiation will help Lee Valley
Tools to offer distinctive product to the
customers.
 Lee Valley Tools should come up with more
portable sharpening tools for domestic usage.

Consumer buying
decision
 If the buyers are having the requirement of
having personal sharpening tools, then only they
are going to buy from Lee Valley Tools.
 Should initiate more of external search by
means of promotion and advertisements to
provide customers with information.
 The point of difference will determine the
preference pattern of the customers for the
tractors of Lee Valley Tools during the
evaluation.

Cont.
 Lee Valley Tools should always update their new
products in order to meet the changing demand
of the customers.
 It is important for Lee Valley Tools to offer
effective after sales service to the customers to
have positive post purchase behavior of them.

Segmentation strategy
 Lee Valley Tools will follow the mass market
segmentation strategy.
 In terms of geographic segmentation, Tier I
cities in Canada will be targeted at the very
first stage.
 In terms of demographic segmentation, age
group between 30 to 65 will be targeted.