Introduction
Company G occupies a unique position within the global appliance market. Due to its large and sophisticate engineering prowess, the company manufactures a unique assortment of small appliances. Due to their overall quality and strong brand awareness Company G can command premium prices within the market for similar product offerings. This differentiation ultimately allows the company to generate high profits and asset turnover ratios than similar competitors within the industry. Due in part to Company Gs strong market position, it has an investment grade credit rating with low debt and borrower costs. From a marketing perspective being in a strong financial position enhances the brand as it relates to supply chain relationship. Individual companies within the supply chain feel much more confident extending credit to the company on favorable terms for example. Smaller companies within the supply chain also benefit from the stability associated with Company G as it relates to their ability to pay outstanding amounts in a timely fashion. The combination of an innovative culture, strong capital structure, and strong brand awareness make it a formidable foe within the competitive marketplace. So much so that the introduction of the its new juicer appliance will be met with mass optimism on the part of consumers (Assael, 1992).
Product Description and Classification
Product Description and Support of the Mission
Company G Mission Statement
We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronics solutions.
Consumers are now transitioning to a much healthier and more productive lifestyle. For one, baby boomers are now one of the most dominate population segments in the nation. As this generation ages they are accounting for much of the healthcare spend within the nation. Currently healthcare expenditures in the nation account for 18% of GDP up from 11% of GDP just one decade ago. Healthcare costs themselves are outpacing the overall growth of GDP growing at 5% per year. The combination of higher healthcare expenditures and health concerns have illuminated a potential problem as it relates to critical social safety nets such as pension, social security, and health insurance. To combat these trends millennials have engaged in a much more health conscious routine. This group is much more likely to join and maintain a health club membership. They are much more likely to pay premium prices for healthy food and beverage options. They are also much more conscious of their appearance particularly on social media and other internet websites. As such, the introduction of the juicer appliance capitalizes on these tailwinds (Baker, 2000).
For one, the juicer enables consumers to create healthy options related to diet and fitness within their own home, saving both time and money. In addition, the juicer can provide efficiency benefits for those who are gym advocates looking to bring their beverage with them to the gym.
As it relates to product specifications the juicer will first appear to active millennials with heavy time constraints. The juicer will be a masticating juicer. Although it requires slightly more time to prepare this form of juicer, but it leaves a little more nutrition within the juice pots and can stand in the fridge for a few days. This is particularly helpful for fitness enthusiasts who meal prep often and would enjoy the reprieve of not preparing their beverages daily. Next, the juicer will have best in class engine quality and power. An important industry indicator of quality is the number of revolutions per minute (RPM) provided by the engine. The higher the number of rotations, the greater the centrifugal force that pushes the fruit towards the grinding net and the amount of dried juice is greater. Traditionally, the competitor set usually has an engine that generates RPMs in the range of RPM is 10,000 15,000. Our product will increase the RPMs by over 10% with a minimum standard of 16,500. Powerful, high-quality motors allow for a greater number of rotations and longer lifespan of the device, while those with less power give less rotation. The enhances RPM will therefore justify the higher...
In addition to the typical blender setup, the product offering will also provide various travel containers that can be used for those looking to go to the gym, a short walk in the park, or a short trip to the
grocery store. Again, the aim for this product specification is to provide convenience and ease of access. In addition to the availability of the containers, the unit itself will have flexibility with its speed settings. The ability to adjust the speed is very useful if you like to make different juices and those with citrus and juices with hard fruits and vegetables, as well as exceptionally healthy juices of green leafy vegetables. Soft vegetablessuch as strawberries, peaches, grapes, and the like can go off at a lower speed, but for hard, rooted vegetables such as beetroot and carrot, more speed is required. The ability to adjust the speed to the food can affect the quality of the juice and will certainly save the time of consumers (Hoyer, 2001).
All these specification enhance the mission of providing quality and convenience with high quality solutions.
Consumer Product Classification
The product will be classified as a convenience products for the reasons mentioned above. To summarize, the factors supporting this classification are as follows:
1. It shortens the time of creating pertinent and relevant beverages for consumers
2. It lasts longer, lowering the downtown associated with maintenance and shopping for other alternatives.
3. It provides flexibility and quality not offered by alternative products allowing consumers to create different beverages with a single product.
The product can also be classified as a specialty product as it:
1. Relies on high quality materials
2. Will be marketed as a consumer product that consumers will seek
3. Selections will be very limited to high end retailers.
Target Market
The target market for the product are higher end, fitness...
…by 10% in Quarter 4 (90days) for the companys fiscal year end.
Marketing Strategies and Implementation
Marketing Strategies
Product Strategies
Differentiate the product relative to peers through quality
Emphasize the warranty and the overall value being provided
Emphasize that the product caters to active, higher earning individuals who are constantly on the go.
Price Strategies
The price should never be discounted or go on sale. This indicates the overall value proposition of the product and attracts the consumers in our target market
The price should be at or near the higher end of the spectrum
Pricing should yield a 20% margin to the company
Place Strategies
The product should be seen only at high end retail establishments that align with vision of the company
The product should occupy a very visible location within the overall retail establishment
The product should be well lighted and showcased as a stand-alone product in the aisle
Promotion Strategies
Very limited promotions to encourage a sense of urgency
Limited product assortment to drive up resale value and further increase the urgency to buy when a sale occurs
Offer rebates on a limited basis. Rebates will be no more than 10%
Explanation of Strategies
This strategy is best as it positions our product as an aspirational product. It also targets a specific market and occupies a niche within the market for a specific consumer. As a result, the product will be offered on a limited basis to help promote the idea of scarcity to help increase demand and ultimately prices. The product will be positioned in highly customer centric and luxury retailers provided further validation of the product.
Marketing Implementation
Product Action Plan
Tactic
Due Date
Responsible Party
Design warranty product offering for use in the product
4 weeks
Sales, Marketing, and Finance team
Set up customer service and sales staff
4 weeks
Human Resource
Train retailers on the product offering and its benefits to customers
8 weeks
Sales team
Price Action Plan
Tactic
Due Date
Responsible Party
Determine pricing of competitive set within the market
2 weeks
Accounting and Finance Team
Determine purchasing behavior and demand for the specific price point within our target market
4 weeks
Sales, Accounting and Finance Team
Conduct market research through surveys, sales observations, and customer interviews
8 weeks
Sales, Accounting and Finance Team
Place Action Plan
Tactic
Due Date
Responsible Party
Begin dialogue with luxury retailers about the product and placement
8 weeks
Sales team and executive management
Begin organizing supply chain to deliver the product on time
12 weeks
Logistics and manufacturing team
Continue to train sales staff on the product and allow for free demonstrations
4 weeks
Human Resource and Sales Team
Promotion Action Plan
Tactic
Due Date
Responsible Party
Train retail associates on the product specifications for weekly demonstrations during high traffic days
5 weeks
Human Resources and Sales Team
No additional sales or promotions will occur with this product
N/A
N/A
No additional sales or promotions will occur with this product
N/A
N/A
Monitoring Procedures
The task instruction is to describe the specific actions that will be taken to measure the progress towards the objectives identified in the plan. Each monitoring procedure should identify the frequency at which the monitoring will be done (e.g., weekly, monthly, quarterly).
To learn more about monitoring, please utilize the Course Search feature using the keyword monitoring.
Monitoring Activity
Due Date/Frequency
Responsible Party
Sales Review
Weekly
Sales Team, Executive Management
Customer Satisfaction Survey
Monthly
Sales Team,…
