Thew purpose of this research proposal is to define how best to launch the JINI Computer and Gaming glasses into the U.S. Included in the analysis is market sizing, trends and a methodology for understanding how best to move into the American market. The overall direction of the market is also assessed as is the development of new programs to gain distribution. The entire proposal is orientated towards B2B marketing.
B2B Marketing Proposal for Selling JINS Computer Glasses in the United States through Distribution Channels
The intent of this proposal is to define the problem, objective, opportunities and recommendations for introducing the JINS computer and gaming glasses into the United States, relying entirely on business-to-business (B2B) based relationships in building distribution channels. The problem is defined as finding the optimal mix of distributors and dealers to get the JINS computer and gaming glasses successfully launched in the United States. The objective is to thoroughly study and define the best possible distributor, dealer and service center candidates across the entire United States, selecting those that have the customer bases and ability to ramp up their sales quickly of the JINI computer and gaming glasses. The opportunities are very significant for these glasses in the United States as there are an estimated 223M computer users (Grobart, 2013) with an increasingly larger percentage of them being 55 years of age or older. The opportunity is very significant for the JINI computer and gaming glasses in the U.S. based on these two findings and those shared in this proposal as well. Of the distribution channels that JINI will need to partner with, those retailers who specialize in eye glasses, contact lenses and eye protection gear are the most potentially profitable channel to sell through.
It is recommended that JINI create a multichannel strategy capable of selling primarily to high-volume retailing chains, as their requirements will also be well suited for the needs of discount retailers including Costco and WalMart.
Situational Analysis
A total of $9.1B was spent on eyewear in the United States last year according to the Opticians Association of America. $814M in profit was earned and the market is growing at an annual growth rate of 3.5% through 20014, according to the association, who reports there are 7,613 optometrists' offices and chain stores selling eyewear in the U.S. alone.
The key success factors in this market is a recognition of the growing importance of consumers that are 50 years of age or older, the growing demand for optometrists and the role of federal funding for eyewear. With the majority of households in the U.S. having a computer, the size of the potential market for the JINI computer and gaming glasses is large and potentially profitable depending on how the company chooses to price these glasses (Bonvissuto, 2009). The most critical success factor for JINI is to establish a strong foundation of trust with the key distributors, dealers and resellers throughout the industry, as this is the foundation of effective B2B marketing and selling (Irving, 2001). Figure 1 provides a market segmentation model for JINI eyewear base on the distribution of PC users in the United States.
Figure 1: Market Potential and Segmetnation for JINI Glasses
Sources: Based on intefviews with market researchers at Opticians Association of America (OAA) and their secondary published research.
Research Strategy
In defining the research strategy to determine the best possible multichannel strategy for selling the JINI into the U.S. market, a combination of primary and secondary data needs to be collected. One of the most important critical success factors for creating a profitable B2B strategy is qualifying distributors, dealers and channel partners with regard to their service expertise (Raddats, Easingwood, 2010). Second is finding those distributors who have insights into how they can sell effectively to retailers, mass merchandisers and smaller offices (Stanley, Wojcik, 2005). JINI needs to set service quality as one of its most importation criterion for evaluating potential new resellers, distributors and dealers who can reach the 228M computer users in the U.S. The research strategy to accomplish this is as follows with secondary research being used to define the overall requirements followed by primary research including interviews with members of the distribution channel.
Secondary Research
First Stage: Define the research objectives of the entire research project including the definition of multichannel distributors, dealers and resellers and most critical success factors for the JINI product introduction.
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