Five-Year Marketing Plan

Nostalgia Products Group, LLC

By Ellen Griffith

Table of Contents:

Page Number
1) Company Description.

2) Strategic Focus and Plan

3) Situational Analysis

4) Market-Product Focus...

5) Marketing Program

6) Financial Data and Projections.

7) Organization 10
8) Implementation Plan.. 11
9) Evaluation 11

1. Company Description
Nostalgia Products Group, LLC was founded by Rob Houston in 2008. He recreated
classics, and developed a whole line of old fashioned products. Nostalgia Electrics produced
products that included an old style Ice Cream Sandwich maker, which was first introduced in
2014 in Green Bay, Wisconsin. This product was soon sold all across the U.S. first online,
and then in stores like Target and Bed Bath and Beyond.
To the Companys knowledge, Nostalgia Electrics is the only premium-quality Ice Cream
Sandwich Maker sold in U.S. In fact, when the company first started it had the very first in
home chocolate fondue fountain. Nostalgia has since then been creating the very best in
family fun, novelty products. The company has tripled its revenue since 2008, and continues
to grow in products and supporters.
Nostalgia Products Group believes its top brand of style, theme, quality, design, and of
course price has proves successful. The marketing plan outlines how the Company will
extend its geographic coverage from 35 markets to 50 in 2020, and double its profits.

2. Strategic Focus and Plan

Mission:
The mission of Nostalgia Products Group is to capture the warmth of classic
childhood foods and make them available through modern convenience. Nostalgia Electrics
balances tradition and technology, variety and quality, personal service and worldwide
distribution. We offer challenging career opportunities as well as above and beyond customer
satisfaction.
Goals:
For the coming five year Nostalgia Products Group seeks to achieve the following
goals:
Nonfinancial Goals:
1)
2)
3)
4)
5)

To maintain top quality of novelty items in the U.S.

To market to new countries around the world
To achieve distribution among two more major stores by the end of 2016
To add new and exciting products every other year
To maintain our presence of #1 in selling easy to use at home novelty products
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Financial Goals:
1) To obtain an inflation-adjusted profit margin growth of at least 15% by 2016.
2) To go public and offer stock by the end of year 2017
Core Competency and Sustainable Competitive Advantage:
In terms of core competency, Nostalgia Electrics has a unique way of looking towards
an innovative future while holding on to the best parts of what came before. We offer quality,
attention-grabbing products that surpass the typical standards of design and functionality.
To translate these core competency into a sustainable competitive advantage, the
Company will work hard to continue to evoke feelings of warmth and fond memories of
times past, while paying tribute to the timeless foods and fares of the era. Nostalgia Electrics
will partner with key distributers to sustain the standards necessary to satisfy our customers.
All designs are defined by the times and infused with modern imagination and convenience
eager to please our customers desires.

3. Situation Analysis
SWOT Analysis:
Figure 1 shows the internal and external factors affecting the market opportunities for
Nostalgia Electrics. This analysis highlights the improvements and how far the company has
come since it first began.

Figure 1. SWOT Analysis for Nostalgia Electrics

Internal Factors
Management
Offerings
Marketing

Personnel

Finance

Strengths
Experienced and inventive
management and board
Inventive, Timeless, high-quality
products
Distribution across the U.S. as
well as 35 other countries across
the world
Small turnover, hard workers,
family based ideas
Excellent growth and sales

Weaknesses
Restricted on number of overseers,
small in size
Competitors offer reduced priced
products with lower quality
Still a small company, with small
shelf space
Can limit growth through small
workforce, not enough personnel to
grow without being overworked
Not as established as big
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Manufacturing
External Factors
Consumer/Social

Competitive

Technological

Economic

Legal/Regulatory

revenue
Sole supplier ensures product
quality and customer satisfaction
Opportunities
Stable market, fast growing
segment due to the timelessness of
product
Distinctive quality and brand of
old fashioned style with 21st
century technology
Technical products that allow you
to create at home products,
without having to buy it from a
store.
Consumer income is high; long
lasting

corporations
Lacks quick delivery, as well as
higher scale of product sales
Threats
Price limits mass market

Others can recreate the idea, not

new inventions

Consumers sometimes enjoy

outside spending on such products
for convenience and quicker
satisfaction
Consumer become less concerned
with older (classic) product looks.
Seems outdated
Everything is of high standard and Merges with other competitors in
government approved
approved products by government

In the Companys favor for internal strengths are: experienced managers and team
members, as well as excellent acceptance of the product line across the U.S., as well as 35
other countries. Though small, Nostalgia Electrics has the ability to exceed in quality and
performance. Favorable external factors include timeless product, as well as a distinctive
brand. Not many products out there with the same quality and look.
Among unfavorable factors, the main weakness is the lack of employers, which
causes lack of growth. If growth happens too quickly, workers become stressed, causing loss
of quality and thus unsatisfied customers. The product is a bit costly, restricting lower
income families to afford such a product.
Industry Analysis: Trends in Novelty Products
Novelty Products: According to First Research and the Census Bureau, about thirty
percent of sales in gift stores are made up of novelty products. Typically customer can vary
by store type; however women in their 40s to 60s make most gift purchases. Sales usually
peak during the winter holidays, but can also peak on days like Mothers and Fathers Day.
Company Analysis:

Rob Houston, founder of Nostalgia Group Products, LLC, has 10 years of experience
from previous employer Cherry Mash who made nostalgic candies. His previous experience
helped him to grow his own inventions to recreate classics for his company, Nostalgia
Electrics. Through his vision of classic products with an innovative spin, the company has
been able to grow and stabilize on the market.
The Company now uses many distributors to cater to a larger market through big
brands like Wal-Mart. The growth of distributors has created a bigger profit margin, as well
as growth in sales and advertising.
Customer Analysis:
In terms of customer analysis, this section describes the characteristics of customers
expected to purchase Nostalgia Electrics products.
Customer Characteristics:
Demographically, nostalgic products generally are purchased by consumers
representing a broad range of socioeconomic background. Nostalgia Electrics is purchased
chiefly by consumers who still recognize these timeless products, as well as have an income
of 55,000 and higher. These consumers represent around 75 percent of nostalgic products.
The household buying Nostalgia Electrics typically consists of families, among them
married couples with at least one child. While women are the predominant buyers, men also
represent this segment
Because Nostalgia Electrics offers original timeless products that no longer are made,
the products biggest users tend to be those of higher age. Because of the price, buyers
usually come from higher income and higher range of age. The age trend usually ranges from
early thirties, to upper sixties. This is due to our products classic looks that are from
decades past, and those who still recognize and enjoy such designs.

4. Market-Product Focus
Marketing and Product Objectives:
Nostalgia Electrics marketing intent is to take full advantage of its branding potential
while building reputation amongst consumers.
Current Markets: Current markets will be grown by expanding brand name amongst larger
scale. If brand name increases, sales increase, thus our product price can lower. This will
capture more customers, which will make our profits grow even larger.
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New Markets: By the end of Year 5, the Nostalgic Electrics will offer more products, as well
as expand its brand name to more retailers across the nation. As we expand and make more
unique products, the better we can cater to new divers markets.
Nostalgic Products: Nostalgic products will include more classic designs with technological
improvements. Sales are expected to reach 8 million by Year 3, and 12 million by end of Year
5. These will double our current revenue.
Target Markets:
The primary target market for Nostalgia Electrics products are households with one to
four people, where often both are working adults, with typical income above 55,000 per year.
These households contain later generations that understand and appreciate novelty products.
Points of Difference:
Unique product and convenience: No known competitors offer such quality and
inventive technology with such timeless pieces. No other product offers easy to use,
technologically advanced, and timelessness in these nostalgic products.
Positioning:
In the past there was only one way to get nostalgic products, and that was to buy it pre
made and pre packaged at specialty stores for such products. Nostalgia Electrics offers
convenience at your home with classic inventions that are easy to use, and fun to create. Not
only is there convenience, but you can add your own twist and ideas to whatever flavors your
heart desires. With the easy to use invention, there is no limit to your creation.

5. Marketing Program
Product Line:
Nostalgia Electrics Homemade Ice Cream Sandwich Maker retails at $148. This
includes the indoor baking unit complete with four cookie molds (2 round and 2 rectangle).
As well as 2 round and rectangle plastic ice cream sandwich molds. You can use many
different recipes to create your sandwich, your options are limitless. We do offer some
recipes, as well as products that you can purchase to help create your sandwich.

Unique Product Quality:

The quality and durability of the Nostalgia Electric products lasts the test of time. It
comes with a two year warranty, and lifetime satisfaction. There is also a 24 hour customer
service center that you may contact any time with question or concerns. If the product is
inadequate to a customer desires, they may return the product with proof of purchase.
Packaging:
Our packaging comes equipped with a picture of the product, as well as a colorful and
eye catching colored background. All products are packaged with care, and have designs sure
to entice the consumer. We also show what the end product of what our invention produces,
as well as shows how much fun you can have creating your very own product.

Price Strategy:
At $148 for the sandwich maker, this product may seem a bit pricy. The quality and
durability will outlast cheaper imitations of the product. Our customer satisfaction
guaranteed allows the customer to return the product within thirty days with a full refund if
not satisfied. The fact stands: quality over quantity.
Promotion Strategy: Key programs feature in-store demonstrations and recipes.
In-Store Demonstrations: The in store demonstrations enable the consumer to really
test out the product, and understand how easy to use the product is. It also demonstrates all
safety features that will help the consumer reduce the risk of accidents.
Recipes: Included at Nostalgia Electrics are recipe packages to help create your easy
to use product. We also provide other convenient alternatives.
Place (Distribution Strategy):
Nostalgia Electrics currently distributes its products through companies like Bed Bath
and Beyond who buys and bulk, then shelves our product throughout the U.S. As sales grow,
and need for the product increases, we are able to distribute higher quantities and meet
demands.

6. Financial Data and Projections

Past Sales Revenue:
In 2014 Nostalgia Electrics reported 5.6 million dollar revenue. This is a huge
increase from .5 million when it first started out in 2008. This is due to product awareness,
and product need. Popularity allowed us to grow brand, and offer products and big retailers
like Target. Sales revenue and projections appear in figure 2.
Five-Year Projection:
Five-year financial projections for Nostalgia Electrics appear below. These
projections reflect the continuing growth in the number of cases sold below, and the sales
revenue projected each year.

Figure 2. Sales Revenue for Nostalgia Products Group, LLC

Projections
Financial
Element
Cases Sold
(thousands)
Net Sales
(millions)
Gross Profit
(millions)

Actual
2014
49,456

Year 1
2016
58,700

Year 2
2017
79,800

Year 3
2018
92,000

Year 4
2019
101,500

Year 5
2020
11,250

10.8

13.8

16.5

18.8

20.3

22.5

5.6

10.5

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7. Organization
Nostalgia Products Group present organization appears in figure 3. It shows the main
people reporting to the President. Below those people reporting to the President are both fulltime and part-time employees of the Company.
Figure 3. The Nostalgia Products Group Organization

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8. Implementation Plan
Introducing Nostalgia Electrics into two major retailers, as well as increase profit
margin, is no easy task. With our foot already in the door with large distributors we hope
more will band-wagon to put our products on their shelves. We want to increase our hold on
the nostalgic market, and have our profits double by the end of year five. We also hope to
gain more consumer support and sales. With this new marketing plan, the Company will be
introduced into two new markets. With more of our product visible to consumers through our
major trailers, their interest and knowledge of our brand will grow.

9. Evaluation
Monthly sales targets in cases have been set for Nostalgia Electrics products for each
new retailer we gain. Actual case sales will be compared with the target goals as well as
compared to past product margins. Adjustments will be made and reflected to meet the
product goal in each specific market retailer.

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