Marketing strategy for a 20V to 24V DC/DC converter product

DC Marketing

Marketing Overview for DC/DC Converter

Product Description

The product being marketed is a DC/DC converter built to receive an input of twenty volts (20V) and produce an output of twenty-four volts (24V). This could be used in many applications; any device or equipment setup where a specific component or element requires 24V to operate but the battery source produces a fixed output of 20V would require a converter such as the product being offered.

Competition and Differentiation

As noted above, there are currently no other switch converters found available on the market that match the specifications of this product, namely taking a 20V input from a direct current source (typically a battery), therefore the product being offered here appears to be unique (DigiKey, 2012). This also suggests, of course, that there has not been significant demand for the specific input/output levels to which this switch converter has been designed, which will limit market size, however it also means that the product will face absolutely no direct competition and is thus the establishing product of a niche market. Any manufacturer (or end consumer, if the larger switch converters are built for direct retail distribution rather than for manufacturing integration) that needs to obtain 24V of DC output from a 20V DC input is going to need to buy this particular product, as there is not any other product available that will perform this exact step-up function (DigiKey, 2012).

Sales, Promotion, and Pricing

Selling and promotion channels and strategies will depend entirely on which route (or routes) the company takes in establishing the size and the efficiency of this switch converters. Business-to-business selling, which is recommended, will initially take place through direct contact with manufacturers and inclusion in industry catalogs, if possible. Promotion would take place in industry-oriented magazines and also through direct sales contact. In the smaller though broader consumer market, again industry magazine and catalog placement would be desired 9 though these will be different magazines/catalogs), and Internet selling and promotion will likely be a major part of the company's strategy of there is to be any success here. Retail distribution can also be achieved, which will likely necessitate a dramatic decrease in the per-unit price the company receives for producing these switch converters, but which will enable greater security and bulk sales that contribute to long-term success. Pricing would also vary significant depending on the size and intended use of the switch converters, however ballpark figures can be established. Looking through records of similar products, a price of approximately $5-$8 depending on order size would be appropriate for business-to-business sales; this price would easily triple if not rise by a factor of five for end-consumer sales.