Analysis of All Factors for Putting the Product in a Better Position to Penetrate the Market - Research Paper Example

?Entrepreneurship and Innovation BUS7001 Introduction and overview The introduction of any new product unto the market is something that always needsto be done with a lot of circumspection. This is because of the fact that most products that come unto the market come as competitors with existing products and would therefore need to be structured in such a way that it will be possible to sail through the market despite the existing market. It is for this reason that innovation in entrepreneurship has always remained an important component of marketing (Aldrich and Auster, 2006). For Dragon Inc, its new product may come with several new features, functions and advantages over existing products but the fact remains that there need to be a lot of market and product assessment and evaluation because there are several existing products on the market that can play the very role that the new product is seeking to play. The question that needs to be asked should therefore centre on how to create a competitive urge over competitors. This is for now, what the present report seeks to achieve by analysing all factors that centre on the product and the market so as to put the product in a better position to penetrate the market (Aldrich and Weiss, 2001). A lot of research will also be done on the product involved so as to establish the key strengths of the product that needs to be built upon and some weaknesses that need to be improved. An assessment of the factors in the marketplace into which you suggest the product could be sold Sale in universities and other educational institutions where students have daily demand for cooking There are several factors on the prevailing market that suggest that the product cold easily be sold. One of such factors has to do with the fact that there are at every point in time, students in various universities and colleges who are in hostels and have regular demand for cooking. These students are not fed by the school and thus have to depend on their own provision for food (Aldrich, 2009). With growing concern for the need to stay healthy in one’s eating habit also, the likelihood that these students will resort to ready-cooked food is also minimal. This therefore means that a lot of these students will have to cook for themselves. Again, considering the fact that there is an ever growing student population in our country, one thing remains clear and that is, the product will certainly have a very large customer base among the students if the university cooking factor is considered critically. Another factor within the university factor that makes the product very viable and suitable for the university population is that students do not have much time for activities like cooking and are therefore always looking for avenues that will make cooking fast and less involving – something that this new product can easily give them (Bender, 2000). Sale in places where the use of electricity as the source of energy as compared to gas is seen to be cheaper and easily accessible. Another important factor that suggests that the product will easily sell on the marketplace has to do with the every growing concern for the need to use electricity as a preferred source of energy instead of gas. It would be noted that gas has for long remained the major supply of energy for most homes in developed and developing worlds. However, the risks involved are fast being calculated by scientists and other experts. Some of these include pollution, degradation of the environment, greenhouse effect and dangers of causing fire (Birley and Westhead, 2004). With such concerns, the focus has now shifted to the use of electricity. Knowing that the new product is powered by electricity, the company has an advantage and potential in selling the product in places where the use of electricity as the source of energy is regarded as safer and environmentally friendly option. Even more, electricity continues to be a cheaper source of energy as compared to gas and other forms of energy for powering cooking devices like stoves (Brown, 2006). This is always of course, a major push for this new product to break the ground on the market and meet the very needs and demands of customers. The choice for electricity is fast becoming preferred for its safety as compared to gas and would thus be a major factor to boost the market It has already been pointed out that electricity is a safe source of energy and this is a growing concern that can never be neglected in considering the factors needed to gain a firm stands on the prevailing market. Reports from the National Fire and Rescue Service (2009) points out that up to 20% of all cases of domestic fire were related to cooking and out of these 78.6% person was among localities where the use of gas is dominant and prevalent Brockhaus, 2012). In the same report, the use of electricity was strongly recommended. All things being equal and for this recommendation to be taken by the people seriously, then it means that the present product will have a very strong reason or factor in the marketplace that suggests that it will be sold. Another important factor on safety also has to do with the fact that environmentalists are constantly considering the safety of gas and other sources of renewable energy for the environment. They have often pointed out that these sources of energy emit unwanted gases into the environment and make the environment for present and future generations. This, of course is another major marketplace factor that favours the sale of the product. The issues that Dragons Inc will have to face in managing the product to market, taking into account the issues which Kitch-in-Zinc may have in its manufacture; - 170 words each Existence of competitors and the need to build competitive advantage over the competitors Notwithstanding the fact that there have been several marketplace factors that have been identified to be on the side and advantage of Dragons Inc, there still remain a lot of issues that Dragons Inc will have to face in managing the product to market. If these issues are not handled well, there is the tendency that the company cannot maximise all the factors that have been identified to be going into their advantage. One of such issues has to do with existing competitors and their existing specifications. There is no denying the fact that there are existing products that has the exact functionalities as that of what is being considered by Dragon Inc to be introduced (Gofee and Scase, 2005). To this extent, it is just appropriate that Dragon Inc will come to terms with the specifications of the competitors. Once the specifications of competitors are known, Kitch-in-Zinc should be made to produce a product that has some major differences from the specification of existing competitors. It is true to say that if specifications that integrate modern technology are fused into the product, the specification of the product can serve as major competitive advantage on the already choked market. Expanding the innovative techniques with which the device works in order to serve as a competitive urge. Further expansion and development of the innovative techniques of the product also ought to be considered critically. As mentioned earlier, such innovative techniques when fused into the specification of the product can serve as major competitive advantage for the existing market. Having said this, in managing the product to market, Kitch-in-Zinc needs to add innovative techniques such as introducing an alarm system to prompt overheat. There should also be timing prompt to alert users who set the cooker to a specific time of function that the time is getting closer or that the time is up (Gutman, 2002). There could also be features such as temperature reading thermometer to give users an idea of the current temperature at which the product will be working at any point in time. Should manufacturers introduce an interactive manual that will speak out the guidelines on the use of the product to users, it will all be good and innovative. Such an interactive manual will make it possible for people who for one reason or the other cannot read. Furthermore, the manufacturers can take into consideration the needs of foreign users by making the screen of the product display as many major international languages as possible so that users will make selection out of the lot. Prevailing global economic conditions and the need to subsidise prices; especially in campus markets It has been pointed out that the campus population is going to form one of the major market destinations for the product. Though this comes as a major advantage to the company, it is still important that the economic conditions of students be considered in determining the price per product of the equipment. What this means is that in places where campus markets are created, the company and manufacturers for that matter need to have a way of subsidising prices so that students will not be at a disadvantage of purchasing the products. This could even be extended to the wider market because it is true that the global market as a whole still faces greater financial challenge (Hisrich and Brush, 2003). As Dragon Inc who are the major marketers do this, it will be important for them to take into consideration the fact that they need to have a supplementary sourcing to take care of the subsidies. One of the simplest ways that company can establish such supplementary sourcing is for them to have alternative network of companies that are into other businesses. Profits from these businesses that may be substantially established than this new one can be used to subsidise prices for the new product till the new product gets enough market base to cater for its own self. The task of selecting a growth option. Right from the early stages, it is should be inherent on Dragon Inc to begin considering growth options as a long term strategic plan. This assertion is made against the backdrop that the product has the potential of succeeding on the market and needing very huge capital for immediate expansion. If this happens at a time the company has not gathered enough funds to the market demand, customers will be starved with shortage of products. To avoid this, there are a number of avenues that the company can resort to and these include merger, acquisition, public offer and new market creation. From a start, it is recommended that the company begins with new market creation options. This is where the company seeks to create new market in various market destinations in different parts of the country and world. Gradually, the ground will be prepared to invite the public to invest in the company through initial public offer (Hisrich and O’Brien, 2001). There after; when the company is convinced that it is ready to take off from a large pedestal, it can then choose between either merging with an existing competitor or buying an existing competitor outright. All of these will be important avenues by which the company can increase its lots in terms of availability of funds. An outline business plan to demonstrate the viability of PortaDinna for Dragons Inc to make a funding decision. Product description The PortaDinna is a revolutionary tool for both home and camping that basically functions as heating and cooking device. Its detachable steel and electric wire base is specially designed with an in-built and easily adjustable heating system for either slow cooking or simply heating things up or keeping your dinner warm (Humphreys and McClung, 2001). The product is multi-purpose and can thus be used for soup, stews and casseroles or even for tea and coffee. What is even more exciting is that it does puddings as well. Identified market Considering the multi-purpose nature of the device, it would be said that the cooking world is the identified market of the product. However, specifications can be made to destinations such as schools, colleges and universities where students have regular demand for cooking as a way of staying away from buying ready-made food from unguaranteed and unwarranted sources (Meredith, Nelson and Neck, 2002). Competitors There exist various electrical stove devices as well as rice cookers, coffee and tea makers, beverage makers as well as electric cookers and ovens. All of these products are major competitors that the company would have to deal with from its very early stages. Major competitive advantages There are two major forms of competitive advantages available to the company and these have to do with pricing and innovative specifications. On the use price as a competitive advantage, it would be said that this is a growing concern among marketers that cannot be neglected in anyway. This is said against the grounds that the global economic trend it continuously becoming compact with little money competing for several products. In a situation like this, buyers have to either settle with cutting down on the number of purchases they want to make or resorting to buying cheaper products. Should the company therefore have a way of subsidizing the prices of its products to make them cheaper than existing products of the same functions, the implication will be that the company will have several consumers opting for products from the company rather than looking elsewhere. Targeted customers Students will serve as the major customers for the product. Among the two genders also, females will be considered readily and quickly. This is simply because of the stereotype that associates women with cooking rather than males. What this means that the marketing of the product will be directed more towards institutions and organisations where there is likely to be more females than males. Some of these organisations and institutions could be given as early childhood schools and nursing training colleges. Possible challenges As with all new products, there are a number of challenges that Dragon Inc would face when it introduces its product unto the market for the very first time. The first of such challenges has to do with competition from existing companies. This will be overcome by developing very strong competitive advantage. What is more, funding to sustain the rate of production may also be a challenge for the company if alternative sourcing are not secure. As the negative implications of technology continues to be trumpeted, the company risks facing the challenging of imitation, that may eventually create the impression that the original products of Dragon Inc are of inferior quality. Estimated cost for next 3 years In order to enter the market, Dragon Inc should be looking at estimates around the tune of ?250,000. This amount will incorporate expenses such as raw materials, which should include silicon, plastics, electro wire, steel. It also includes costs of packaging, curing, electricity, paints and labour. Conclusions and Recommendations A lot have been said regarding the new product that the company is seeking to introduce unto the market. Ideally, Dragon Inc is in a better position to market the PortaDinna to be produced by Kitch-in-Zinc to make substantial profits from the estimated ?250,000 that the company will be putting into the first batch of investment. Due to the fact that the company must maximise its expenditure, it is recommended that the introduction of the product be done on a pilot basis. This is to say that the company must find a pilot market where it would test the trend of sale of the product (Murray, 2001). This pilot sale will give the company a lot of insight into the exact demands of customers and how to meet all these demands. In the absence of this, the company may make a mistake of introducing unto the market, some thing that does not meet the demands of customers and would thus not make the expected impact on the market. REFERENCE LIST Aldrich, H. 2009, Networking among women entrepreneurs. In O. Hagan, C. Rivehun, & D. Sexton, Women-owned businesses, p. 103-132. New York. Praeger. Aldrich, H.; Auster, E. 2006, Even Dwarfs Started Small: Liabilities of Age and size and Their Strategic Implications. Pp. 165-98 in Research in Organizational Behavior, vol. 8, edited by Barry M. Staw and Larry L. Cummings JAI Press. Aldrich, H.; Weiss, J. 2001, Differentiation Within the United States Capitalist Class: Workforce Size and Income Differences. American Sociological Review 46:279-90 Bender, H. 2000, Report on Women Business Owners. American Management Association. Birley, S., Westhead, P. 2004, A taxonomy of business start-up reasons and their impact on firm growth and size. Journal of Business Venturing, 9: p.7-31 Brown, R. 2006, Women as employees: Some comments on research in industrial sociology”. In: D. Baker and S. Allen (Eds). Dependence and Exploitation in Work and Marriage, London, Longman. Brockhaus, R.H.; 2012, The Psychology of the Entrepreneur. Encyclopedia of Entrepreneurship. Prentice Hall. Pp. 39-57. Bruno, A.V, Tyebjee, T.T 2002, The environment for entrepreneurship. In C.A Kent, D.L. Sexton; K.H, Vesper (Eds.). Encyclopedia of entrepreneurship (p.288-307). Englewood Cliffs, N.J: Prentice-Hall. Boden Jr., Richard J.; Nucci, Alfred R.. On The Survival Prospects Of Men's And Women's New Business Ventures. Journal of Business Venturing, July 2000, Vol. 15 Issue 4, p347, 16p Collerette, P; Aubry, P. 2000, Socioeconomic Evolution of Women Business Owners in Quebec. Journal of Business Ethics, 9 (2): p. 417-422. Cromie, S. 2007, Motivations of Aspiring Male and Female Entrepreneurs. Journal of Occupational Behavior. 8:251-61 Cromie, S.; Hayes, J. 2008, Towards a Typology of Female Entrepreneurs. Sociological Review. 36:97-113. Gofee, R.; Scase, R. 2005, Women in Charge: The Experience of Female Entrepreneurs. Allen & Unwin. Gutman, J. 2002, A Means-End Chain Model based on consumer’s categorization process. Journal of Marketing, 46, spring: p.60-72. Hertz, The Business Amazon. Hisrich, R.D; Brush, C.G 2003, The woman entrepreneur: Implications of family, educational, and occupational experience. In J.A. Hornaday, J.A. Timmons, & K.H Vesper (Eds.), Frontiers of entrepreneurship research, p.255-270. Wellesley, M.A: Babson College, Center for Entrepreneurial Studies. Hisrich, R.D; O’Brien M. 2001, The Woman Entrepreneur from a Business and Sociological Perspective. In Frontiers of Entrepreneurship Research 1981, ed. K. Vesper, Wellesley. Mass.: Babson College. Humphreys, M.A.; McClung, J. 2001 Women Entrepreneurs in Oklahoma. Review of Regional Economics. 6:13-21 Kets deVries, M. 2007, The Entrepreneurial Personality: A Person at the Crossroads. Journal of Management Studies. 14:34-57. Lee-Gosselin, H.; Grise, J. 2000, Are Women Owner Managers Challenging Our Definitions of Entrepreneurship? An In-Depth Survey, Journal of Business Ethics 9(2): p. 423-433. Meredith, G.G, Nelson, R.E, Neck, P.A. 2002, The Practice of Entrepreneurship, International Labour Office, Geneva. Mc.Clelland, D.C. 2001, The achieving society. Princeton, N.J, Van Nostrand: 226 p. Mescon, T., Stevens, G.E. 2002, Women as entrepreneurs: A preliminary study of female realtors in Arizona. Arizona Business: 29 (7), p. 9-13. Mill, J.S 2008, Principles of political economy with some of their applications to social philosophy. In J.A. Schumpeter (Ed.), History of economic analysis. New York: Oxford University Press, 1954. Murray, H. A. 2008, Explorations in personality. New York: Oxford. Murray, H.A. 2001, Some basic psychological assumptions and conceptions. Dialectica, 5, p.266-292. New economic realities: The rise of women entrepreneurs. 2008, A report of the Committee on Small Business. House of Representatives. Second Session, (June 28). Washington, D.C: U.S, Government Printing Office. Normann, R. 2007, Management for growth. John Wiley and Sons, Chichester. Read More