You are on page 1of 3

Situation Analysis

The Metolius Agency is just starting up operations. A well conceived and executed marketing plan
will be critical to the successes and profitability of the business. The agency offers graphic design
and visual communication services to the Concord, New Hampshire market.
Market Summary

The Metolius Agency possess good information regarding the market and knows a great deal about
the common attributes of the most prized customers. Metolius will leverage this information to
better understand who is served, their specific needs, and how Metolius can better serve them.
Market Analysis
2002 2003 2004 2005 2006
Potential Customers Growth CAGR
Small companies 8% 234 253 273 295 319 8.05%
Medium companies 7% 145 155 166 178 190 6.99%
Other 0% 0 0 0 0 0 0.00%
Total 7.65% 379 408 439 473 509 7.65%
Market Needs

The Metolius Agency is providing its customers with a wide selection of graphic design and visual
communication services for established companies wanting to be taken to the next level of business
competition. Metolius seeks to fulfill the following benefits that are important to their customers.

* Selection: A wide range of graphic design and visual communication services.


* Accessibility: All services will provided from Metolius' centrally-located office space.
* Customer Service: The client will be impressed with the level of attention that they receive.
* Competitive Pricing: Metolius' price structure will be competitively positioned.

Market Trends

Within the last seven to 10 years, there has been a trend in the industry for the general advertising
agencies to start acting as a full-service agency that not only prepares advertisements, but also does
much of the creative work in-house instead of outsourcing it. This trend toward full-service
agencies has continued. To a large degree it is occurring due to higher profit margins for the service
providers. The Metolius Agency will be bucking the trend and concentrating on their specific skill
set and not offer everything under the sun.
Market Growth

In 2000 the graphic design industry reached $812 million dollars. It is forecasted to grow at 5.6%
for the next five years. This growth is attributed to companies' desire to appear professionally to the
public. Another related aspect of this trend is the formation of many small business owners that took
their business, or created a business that uses the Internet and their desire to appear more corporate
or established than they really are. This is accomplished through the use of graphic design and
visual communication services.
SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and
describes the opportunities and threats facing The Metolius Agency.
Strengths

* A unique combination of both creative and business sense.


* An elegant office that gives off the perception of creative, cutting-edge design, implying a
skilled service provider.
* A targeted focus for attracting customers.

Weaknesses

* The struggle to develop awareness related to a start-up company.


* Increasingly limited amount of time for marketing activities as more and more time is needed to
finish projects.
* The struggle to constantly appear on the "cutting edge."

Opportunities

* A growing market that does not seem to be focused on attracting a target customer segment.
* The ability to generate future business by leveraging the technological advances of the Internet.
* An industry that is not significantly effected by slumps in the economy.

Threats

* Competition from local competitors who decide to focus on Metolius' targeted segments.
* Significant increase in ease of use of graphic design software that allows individuals to design
their own graphical pieces.
* A shift in local industries that changes the demographics of many of the companies located in
Concord.

Competition

The following are examples of the different types of competitors.

* Large Advertising Agencies: Over the years these firms have increased their number of service
offerings from selling media forms of advertising, to a more full-service company that develops
creative work in-house, working with companies to develop corporate identity, etc.

* Freelance Designers: These competitors are similar to Kiev because they are typically a one
person operation, usually operating out of their own home. Often the freelance designers are just
getting into the business and are trying to get experience, or they have left a firm in search of a
more flexible lifestyle. Some freelance designers are well experienced and can offer the same
professional level of quality the large agencies offer.

* Kinko's: While Kinko's is not a true competitor, they are a substitute competitor that should be
mentioned. While Kinko's does not have a true creative department, for some of the larger accounts,
they will offer free creative services as a value-added feature to the larger customer. These services
are typically provided by an employee who has introductory or intermediate skills using graphic
design software such as Quark or Freehand, and in a small amount of time can generate creative
images for the client. These services are typically not billed, just a value-added benefit for using
Kinko's. While the price is quite good, the customer must recognize the fact that these services are
not on par with a professional agency.

Service Offering

The Metolius Agency provides graphic design and visual communication services to already
established, primarily Concord-based companies. Some of the services offered are corporate
identity, marques, logos, branding, and packaging.
The pricing of the projects is typically estimated as a project-based cost. The project cost will be
estimated by the approximate number of hours needed to complete the project. Generally, Kiev will
be charging $75 an hour for his services.

The majority of services will be provided at The Metolius Agency's office space. This office will be
designed to appear sophisticated, modern, practical, and sleek. This is very important because the
office of a graphic designer is a piece of their portfolio and reflects their work product. Therefore, a
decent amount of money will be used to develop a proper appearing business office.
Keys to Success

The keys to success are:

* Professionalism.
* Creativity.
* Practical insight.
* Enjoyment of the experience.

Critical Issues

The Metolius Agency is still in the speculative stage as a service provider. It plans to take a modest
strategy toward project acquisition, not accepting projects by virtue of increasing revenue, but
accepting new projects conditionally on the fact that sufficient resources can be committed ensuring
complete customer satisfaction.

Read more:
http://www.mplans.com/graphics_design_firm_marketing_plan/situation_analysis_fc.php#ixzz16nd
F8cKp

You might also like