On one hand, this may alter the consumers' trust in the company's products which are perceived as intangible compared with those goods that can be purchased from the shelves of specialized stores. On the other hand, resorting to intermediaries implies paying a certain commission which results in higher prices for the respective products. Moreover, the success of selling through indirect channels depends, to a great extent, on the distributors' efforts and knowledge. Although they receive tuition from the producer's technical staff, there may be several interests leading to a prominent discordance between the distributors' behavior and the company's expectations towards it.
Threats primary problem that ADEL could encounter is the Australians' lack of information on biometrics secondly, Australians have a favorable attitude towards traditional security methods based on patrolmen or alarm systems the Australians' misconception about prices (most of them think that the price of an effective security system exceeds $750) which hinders them from upgrading their home security systems the lack of confidence in the suppliers' offers as a result of the numerous security companies which have failed to keep their promises.
4. Marketing objectives
Considering the Ansoff matrix (which establishes four types of market growth strategies: achieving higher market penetration, finding new markets, developing new products for new customers or diversification, and developing new products for existing customers), the new Biometric Fingerprint Door Lock that ADEL intends to launch on the Australian market on September 1, 2007, falls under the incidence of the third category above. In other words, the overall marketing strategy consists of market growth through diversification.
The marketing objectives which subscribe to this managerial decision are:
increasing market share to 5% by December 2007 increasing spontaneous brand awareness to 7% and prompted brand awareness to 20% by December 2007
5. Marketing strategies and brief tactics
The market share is an indicator which emphasizes the ratio between the volume of purchases for a certain brand (Biometric Door Lock, in our case) and the total volume of purchases on the respective market (home security products, in this case). Thus, for its increase, there are 2 strategies that can be mentioned:
persuading a high number of people to buy the newly launched product persuading consumers to purchase a higher volume of products
The tactics subordinated to these two strategies include: offering special prices (price), offering a related product as a bonus when purchasing the new Fingerprint Door Lock (product), resorting to advertising and PR (promotion), achieving an increased number of websites capable of distributing the product (place).
The second objective that has been announced earlier - the increase of brand awareness (an indicator expressing the ratio between the number of interviewees who mention the ADEL brand - in the case of spontaneous awareness, or choose it - in the case of the prompted alternative, and the total number of interviewees) implies building an interface between the brand and the consumer through sustained communication. The tactics serving this strategy mainly focus on advertising and PR.
6. Tactical marketing programs
Before starting to delve into tactical programs, preliminary information on the targeted market is a sine-qua-non condition for developing pertinent solutions. Consequently, the segment to which the Biometric Fingerprint Door Lock is addressed to encompasses Australians living in the urban environment, with a superior level of education, and a level of income ranging from moderate to high, who are preoccupied by both the safety and the refined design of their homes. Thus, the new product will correspond to the second and third level of the Maslow hierarchy because it attempts to meet security needs from a pragmatic point-of-view, and respectively, social needs from a design perspective which tries to impact on guests through an outstanding opulence.
In terms of price policy, ADEL will adopt the penetration strategy. This consists of entering the market with low-priced products in order to gain market share. Thus, the company could offer a promotional price which is 10% lower than the usual one. Such tactics will surely influence the Australian consumers' decisions as one of their major buying criteria refers to affordable prices.
Secondly, the company may offer a gift (e.g. A smoke detector) from the same area of safety products or it may provide the customer with a free subscription for the Security Insider Magazine. This way, the consumer will have the opportunity to...
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