Positioning of Tangible Product Background Assessment

  • Length: 10 pages
  • Sources: 10
  • Subject: Business - Advertising
  • Type: Assessment
  • Paper: #26198444

Excerpt from Assessment :

At the same time the social awareness is increasing in terms of its viability as a rescue product in case of any battery failure.

Technological Environment:

The renewable energy products are gaining popularity in developed countries. The technology used in the product is using sunlight to transform it into solar energy for chagrining battery. Therefore it is an advanced technology. The usage of solar technology as well as the presence of secondary input through the car lighter is evident that product is designed using the latest technology. The technological environment of the product is rapidly chaining and improvements are incorporated. The product should be analysed periodically for advanced features.

Environmental Environment:

The environmental aspects of the product are most favourable in terms of the product usage and technology used to manufacture the device. The product is considered as a contributor to the efforts of promoting renewable energy alternatives at small scale usage. The portability and environmentally friendly nature of the product is highly appreciated in terms of its benefits for maintain a clean and natural environment.

Legal Environment:

The legal environment of the product is also in favour of such technological products. There are no such legal implications in development, manufacturing, usage, sales, and distribution of the product. However the legal implications should be considered in terms of marketing and advertising materials. It should be clearly communicated to the customers that during extreme unfavourable condition solar charger can only be used with car lighter. It cannot use sunlight as a source of energy and it might affect the device's working capability.

7. SWOT Analysis

Strengths:

Brand Position

Quality Assurance

Reliability of Product

Critical usability

Weaknesses:

Product Positioning

Marketing and Promotion strategy

Market Reach

Opportunities:

Tourism Trends in favour of Caravan and Camping

Market decline for roadside rescue services

Solar energy promotion

Positive environmental factors

Threats:

Low Price differentiation

High market competition

8. Objectives

Marketing Objectives:

The marketing objective is defined in terms of three major variables. These components are important in terms of increasing the customer's awareness through marketing, market share, and sales of the product. These three marketing objectives are having a complimenting effect on each other. The integrated approach is required to achieve these objectives. The customer awareness increase is targeted at 40% as compared with the current customer's target. The market share is targeted at an increase of 25%. The sales should increase by 20% in the targeted period.

Financial Objectives:

Product: RSP-150 Solar Power Maintainer

Current

Projected

No of Units Sold

£ Price

Value of Units Sold (£)

No of Units Sold

£ Price

% Increase

Value of Units Sold

23000

20

460000

27600

20

20%

552000

9. Marketing Strategy

Target Market:

The target market segmentation is based on the key market factors influencing the growth potential for product sales through effective use of marketing and advertising strategy. The market is segmented on the basis of functional characteristics of the product. The travellers by cars for camping sites holiday destinations are the primary target market segment of the product. The second most important segment is the owners and users of cars older than five years. The sub-segmentation of the holiday makers segment is based on the age group as 15 to 25 years of age using their own cars for traveling to camping holiday destinations. The owners of cars older than five years are further segmented as the individuals not using roadside rescue services based on the low to middle income group individuals.

Unique Selling Proposition (USP)

The product has a unique standing in the market regarding its ability to use two inputs. The workability with sun light is the first input. However at the same time product can also be used using car lighter. Moreover the portability and ability of the product to charge car's battery is also a unique selling proposition. The additional lead provided with the product in same price is also and added feature. The product is also available in two different models with increased capacity that is not present in the market through any other competitor.

Marketing Mix:

The organizations can develop a marketing mix based on the target market dynamics and competitive advantage. It provides an understanding of the integrated approach towards the marketing and promotion of the products. The marketing mix is a term used for defining 4 P's of marketing. Individual strategies are developed to compliment the marketing strategy. The four notable elements of marketing mix are product, price, promotion, and place (Distribution)(Gitman & McDaniel2008).

Product:

The product is an important element of the marketing strategy. The product strategy is based on the key features of the product. It is concerned with the products technical, functional, and physical features. The product strategy should focus on satisfying customers' needs as well as providing value to the customers. The recession in the market requires the product to add additional features and value for consumers. The current product provides a number of features as an added value to consumer i.e. The lead for car lighter and dual power input. However to improve the product care a pouch for the product will be added within the same price. It will enhance the products life and provide care for the customer'sportability. The service ability of the product can also be improved through offering subsidized product repairs and replacement of parts for one year. The one year warranty will also create an impact on the customers in terms of increasing product reliability.

Price:

There are several pricing strategies including penetrating, skimming, competitive, and introductory. The pricing strategy is also essential for defining the competitive market position of the product (Gitman & McDaniel 2008). The selection of appropriate pricing strategy is required to increase market share as well as improve the sales. It has direct impact on both elements of the product. The pricing strategy for the product is selected as competitive. The price of the product will be set according to the market survey report generated through extensive market search and applicability of data analysis techniques (Hair Jr., Celsi, Money, Samouel, & Page 2011). The competitor prices will be analysed to provide a competitive price for the product. Target market will also be surveyed in terms of their buying power and affordability

Promotion:

The promotional strategy of the product is an essential element of the whole marketing mix. It provides a support for creating market awareness and coordinated approach is required for an effective promotion strategy. A number of activities are associated with the promoting strategy including PR, advertising, personnel selling, sales promotion. It is highly recommended that the organization chooses a promotion strategy which is most suitable for the product, target market, and results oriented (Guffey & Loewy 2012). In case of the solar battery charger for battery internet marketing along with the advertising in travel and automotive magazines is appropriate. The promotion strategy will also include direct mail and e-mail marketing through purchased data of holiday makers and car owners of five years old cars. Social media, content community, and blogs marketing are also a vital part of the business strategy.

Distribution:

The distribution of the product is maintained through the distributors and key websites for selling automotive and camping equipment. However, it also requires establishing won company maintained website for e-commerce support. The product should be displayed with its benefits and delivery to the clients should also be maintained through an efficient system. The placement of product in key DIY and automotive stores after acquiring a notable shelf space will also provide a competitive advantage.

10. Recommendations:

The recommendations for the product re-positioning are as following:

The customer awareness should be enhanced through promotion and coordinated marketing.

Market share should be increased through active marketing strategy.

The sales of the product should be assessed every month to incorporate effective marketing and sales strategy.

11. Appendices

Gantt chart of Proposed Marketing Activities:

No

Activities

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

1

Social Networking website Users

10 days

2

Content Communities

3

Blogs

4

Camping communities

5

Company Website

6

Affiliate Website ad Clicks

7

Print Media

8

Company Database Direct Calls

9

E-Mail Marketing

10

Database Direct Mail

Appendix II Proposed Budget

Please see File Attached

Bibliography:

Amazon, 2011, SOLAR POWER CAR PANEL BATTERY TRICKLE CHARGER 12V 1.5W, Retrieved From: http://www.amazon.co.uk/gp/product/fB002V9JEF0/ref=s9_simh_bw_p263_d0_i4?pf_rd_m=A3P5ROKL5A1OLE&pf_rd_s=merchandised-search-9&pf_rd_r=AA95B12935CE4ADA9860&pf_rd_t=101&pf_rd_p=368716567&pf_rd_i=248877031

Gitman, LJ, & McDaniel, CD 2008, the future of business: The essentials, South-Western Pub, USA.

Go Outdoors, nd, Ring Solar power battery maintainer, http://www.gooutdoors.co.uk/solar-maintainer-p178539

Guffey, ME & Loewy, D 2012, Essentials of business communication, South-Western Pub, USA.

Hair Jr., JF, Celsi, MW, Money, AH, Samouel, P, & Page, MJ 2011, Essentials of business research methods, ME Sharpe, USA.

Mintel, 2011, Camping and Caravanning - UK - April 2011, Mintel Group Ltd., Retrieved from http://store.mintel.com/camping-and-caravanning-uk-april-2011

Mintel, 2012a, Camping and Caravanning - UK - April 2012, Mintel Group Ltd., Retrieved from http://store.mintel.com/camping-and-caravanning-uk-april-2012

Mintel, 2012b, the Vehicle Recovery/Roadside Assistance Market -- UK -- September…

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