Communication plan development and implementation

Communication Plan

Communication Objectives

The company has serious competitive issues arising from foreign market manufacturers that have much lower overhead than the company. Formerly, the company was the number one manufacturer of children's clothing but recently has lost that ranking. Effective communications will be of utmost importance to facilitate a company transition. To achieve effective communications the following objectives have been identified:

Communicate the created transition plan that will detail the steps that will need to be taken in order for the company to regain its international leadership role to all shareholders, management and salaried, as well as hourly employees

Address all shareholder and employee concerns about the transition plan

Communicate the timeframe for each of the plants to switch production to the new product line

Maintain current customer base (retail and wholesale)

Build (new and old) relationships and educate retailers, employees and customers regarding new product line

Generate publicity for the new product line

Communicate and promote company's new name

Maintain service and inventory levels

Situation Analysis

Company Strengths

The company strengths are numerous, and, in order to succeed, those strengths will have to be taken advantage of. Those strengths include a strong management and management style, factory employees who are willing to work hard and are loyal to the company (to a degree) and who are also second and third generation employees, a mutually respectful relationship with the unions that govern the employees, and a slow and steady approach to marketing that has succeeded since the Industrial Revolution era.

The company also has opened and maintained relationships with wholesalers and retailers that led to a number one manufacturing position. This is an especially important strength, since cultivating these relationships will be crucial to acceptance of the new product and company name. Since these relationships have served the company so well over the decades they must have been serviced well, using these relationships is crucial and of equal importance is the solicitation and establishment of relationships with new and additional retailers and wholesalers as well. Other strengths of the company include already established plants that can easily be converted for production of new styled clothing. The company also has distribution channels that have been in use for many years and make delivering the new product a fairly simple process. Therefore, the personnel, production facilities, distribution chain and established relationships can all be considered as advantageous for the company.

Company Weaknesses

In comparison to the strengths of the company, the weaknesses are just as glaring. The company, for years, has been run as a military style factory, which could lead to resentment from the workers. Troubled employees can lead to production losses and disruptions. Key employees will need to have their concerns addressed and should be kept happy. Especially important will be the employees who will be on the 'front line', those are the employees who will be responsible for soliciting, establishing and maintaining old and new relationships with retailers and wholesalers.

Although employee morale seemingly has not been a major problem, care will need to be taken in order to facilitate an orderly transition from a New England type atmosphere of conservatism to a more trendy and upscale outlook, while still maintaining the diligence and hard work environment the company has fostered for generations.

Another major weakness is the incremental cost of living raises negotiated by the union. These wage raises are pricing the company out of the marketplace, allowing foreign firms with much lower pay scales to price their products in a much less expensive way. Either the price or the company's product must be competitive or the product itself must be demonstratively superior. A blend of the two would probably be preferable, which could lead to problems in production.

In this event, the union would have to be approached and a team concept negotiated and implemented that could possibly allow for higher wages tied to the profit margin of the product. This scenario is very risky and difficult to sustain.

Another approach might be a freeze in wages until the product has been rolled out in order to discern whether the product will provide a long-term viable situation.

This radical makeover is fraught with peril and could lead to much lower sales and profitability for the company. A positive outlook in all communications should be strictly adhered to and all management and employees should buy into the scenario before launching the product.

Opportunities

Since the company was founded on basic principles of producing a good product for a fair price there are many opportunities in this scenario that would lead to extended profitability for the company. The opportunity is there for the company to regain its number one rating in the world as a clothing manufacturer. Another opportunity that also presents itself is a way to secure the company's future (which effects the company's employees as well) and the opportunity to become a more diverse company. Establishing the company as a provider of upscale, trendy clothing could lead to vastly higher profits which would ensure that the company will remain viable for years to come.

By becoming more diverse, the company can offer different product lines to complement our current offerings as well as the trendy lines for the 18- to 21-year-old market that is being proposed.

An advantage to offering trendy, upscale clothing products is that what may be 'in' today, could be 'out' tomorrow, opening up more opportunities for additional sales of the new 'in' product, rather than relying on clothing purchases to replace product that has become worn or faded. In order to take advantage of this type of sale, observers of the upscale market will need to keep the company informed, and with that information, the company will need to be prepared to respond in a quick and efficient manner to take advantage of those opportunities as they are presented.

Some experts predict that revenue from the type of market which the company is considering will be generating over 10 billion dollars in sales per year within the next 5 years. The opportunity for the company is to capture at least 10% of those sales in just a short matter of time. If the company does so, the revenue generated by such sales will be nearly double what the company currently generates. At some point in the very near future, the opportunity will be there for the company to totally abandon the children's and baby clothing lines and concentrate wholly on dominating the proposed trendy line.

Threats

The threats to the company are numerous. The company is not the only clothing manufacturer considering such a move, and other companies are already in the process of transition. Many of the company's competitors have well-established clothing lines that already cater to those exact demographics which the company will also be targeting.

While the market the company is targeting is quite an attractive market, it is also a finicky one, to say the least. 18- to 21-year-old men and women are notoriously picky about what they wear. According to some reports, this age group is second to only young teenage girls as to how picky, or trendy their clothes must be. This factor, plus other factors such as price and product quality can create a 'difficult operating environment' for the company.

This 'difficult operating environment' will need to be watched and adapted to on a consistent and regular basis. If the company fails to create a sufficient demand for the product the entire financial health of the company can be effected.

Another threat to the company will be the accessibility of the material needed to produce such a product. Buyers will need to keep an eagle eye on the marketplace in order to purchase cotton and silk at wholesale prices that will allow for the greatest profitability while still maintaining the quality aspect of the clothing for which the company has earned a very high reputation.

Ensuring that the base material is purchased at a price that will induce high profit margins is essential, but it is also a concern that such material be delivered in a timely manner to the company in condition conducive to creating a high quality product.

Audiences

With such a huge undertaking by the company, a coherent and organized message must be presented to all those that will be affected. Communicating that message to those audiences will include a coherent mission and integrated strategic goals.

Those audiences to which the message will be sent include; the employees, management, the media and of course the buying public, especially those 18-21 years of age.

Concerning the employees, each individual will have different 'me' issues depending on where, when and who they work with or for. The 'me' issues will also depend on their job title and functions. Therefore, a message will have to be drafted for each department depending on those variables. Since employees from every department will be affected by this drastic change in company objectives, each department will be sent a customized epistle that will layout in clear and certain words and tones the goals and objectives of the company, the steps the company will take (concerning their particular departments) as well as the overall steps taken by the company as a whole.

The Board of Directors, shareholders, Hans Baumwolleh (CEO), the Senior Management Team, Human Resources and the Sales department will need customized messages as well.

Engaging management from all levels will be essential to the success of the company plan in reaching the goals and objectives as they are stated. To achieve that success will take communication between all parties, all individuals and all departments. Communication, therefore, is essential to the overall success of the company. Management will play a key role in that communicating, and will need to remember that not all employees see things in the exact same way as management does. It is crucial that a positive tone be carried through in all correspondence (whether written or verbal) especially in regards to the company's new goals, objectives and direction.

Management will play a crucial role in the success or failure of this new direction, and will be advised to maintain consistent, positive messages and provide a context to those messages that will assist others in understand not only what the company is attempting, but the why's and wherefores as well.

Our external communications are equally as important, especially when speaking with those in the financial industry (ie; financial and industry analysts). This particular audience can be like sharks circling a wounded dolphin, and must be kept at bay. Keeping the analysts at bay does not mean that the company spokesperson mislead them in anyway, but it is important to relay not just the message to these individuals, but the way the message is presented that can be just as important.

Special care must be taken by the company representatives to adhere to the 'company line' and be positive in all remarks and conversations with these analysts. Another audience that we must keep in mind is the consuming public that has either been purchasing our product for years, as well as the consuming newcomer to the company's product.

The newcomer may be the more important of the two, although the company must not forget those consumers that have been loyal to the company for a great number of years. These consumers will ultimately determine if the company will be successful in its endeavors or will become just another dot on the map of companies that used to be.

Spokesperson Credibility

It is well-known that a company can be represented either with sincerity, style, grace and believability, or it can be represented in the exact opposite manner.

Credibility is enhanced or diminished by how the information is presented. The company is going to be attempting a major overhaul on both its product and its market, and with such an overhaul comes a lot of skepticism on the part of the so called experts.

Skepticism on the part of the experts can lead to a skeptic public, this skepticism would have to be overcome in order to facilitate the company's overhaul.

One of the ways to overcome that skepticism is by having a spokesperson that oozes credibility. One such person can be the CEO, Hans Baumwolleh.

This gentleman (Hans) is a fourth generation owner, a man who truly cares about his employees, and he portrays the stability, the believability and the sincerity that is essential when speaking to the public, the media or to shareholders. With Hans at the forefront, leading both internal and external communications, many of the audiences he will be addressing will feel more secure, more comfortable and more likely to support what the company is attempting. His commitment to the company he leads, as well as to the future of that company is almost palpable and he exudes a confidence in his abilities to lead the company towards whatever goals are deemed viable.

Desired Response(s)

If this communication plan is successful, it is hoped that the company will realize the support of all parties, at least to the extent that those parties or audiences will not actively fight against the company's change in direction, even if they do not believe that it is the best possible move for the company. It is also hoped that the following will occur with a successful implementation of this communication plan:

Gain a buy-in from all affected parties to the communication plan

Audiences will understand why the company chooses to pursue such a radical change

Employees will understand what their respective roles will be during the company's product line change and how they can most effectively assist in a smooth transition

Employees will focus on what it takes to excel in their respective roles

Consistent and positive messages will be provided to all affected audiences

Media and industry analysts will be more supportive with the regular and consistent messages provided by the communication plan

The company will grow and enhance current, and new, relationships within the industry

Service, production and quality will remain high

Consumers will make ongoing purchases of the new product line

Communication Strategies

It is a normal employee response to drastic company changes such as those being proposed to be worried of the affects of such changes. The employees are going to desire a leader who can and will lead them with confidence.

In addition to the worries that will be suffered by the employees, the public, the analysts and the shareholders will also be watching the happenings with a very watchful eye. Therefore, a communication plan has been created that has four distinct phases.

The first phase is going to be aimed at the marketplace and especially those individuals in the demographic range that we are targeting. The company will be making a drastic move by attempting a new product line and will have to be patient and focus on maintaining current relationships, as well as building new ones with retailers and wholesalers. This approach allows the company the advantage of using already established commitments and relationships to grow the market already in place.

The company's first priority is to focus on the consumers that will be purchasing these products and the media that will deliver the company's message to those consumers. Proactive news releases as well as advertisements that will enhance the product line are essential and will be created by the public affairs and advertising departments respectively.

The second phase will be to focus the company's message on the employees who are naturally going to be anxious over the company's change of direction and what it means for them. This can be accomplished by holding regular meetings with the department heads and managers who will then be instructed and informed as to the day-to-day happenings that they can then relay to the other employees as seen fit.

To ensure that management is able to effectively and consistently deliver the company's message it is recommended that weekly (or more often if necessary) meetings be held for discussions and to answer all questions management may have. Weekly meetings for the other employees can then be conducted by management.

It is of vital importance that these meetings present a strong message with no mixed signals. An open and aboveboard atmosphere must be maintained at all times. Management is encouraged to be as honest as possible about the objectives and potential for the company as well as any possible pitfalls. Research has shown that this approach by the company as well as the company's management works the best and provides the most likely scenario for success.