Consumer Goods Classification - Term Paper Example

Consumer Goods Classification 1. BUSINESS OVERVIEW Fake Company is introducing its new product line of small appliances. This marketing plan shall be focusing on their new energy efficient dishwasher, Greenwash. Innovative design and high quality are the defining features of their new appliance. There are few competitors who are offering a combination of these features. The company has high brand equity and strong customer base. Alongside, Fake Company also maintains credible relationship with its suppliers which have improved its long term sustainability. 2. TARGET MARKET The potential market for energy efficient, stylish and high quality dishwasher is mainly households and commercial businesses.

The target market is divided into three distinct segments: Family household- this market segment often belongs to middle to upper class and comprises mainly of children. They have large number of electronic devices at home and often, children influence the purchase decision. Single person household- this market segment comprises mainly of professionals who live independently and different electronic gadgets and appliances. They generally have high disposable income. Commercial businesses- this is the smallest target market as commercial businesses generally need large electrical appliances.

Though, at times, the commercial demand increases because of Greenwash’s good quality and energy efficient feature. 3. CONSUMER PRODUCTS CLASSIFICATION SYSTEM Consumer products, goods purchased for personal consumption, are generally classified using a three-way product classification system. The classification is as follows: Convenience products- goods that require frequent purchases and are often low-priced. Shopping products- high risk products that require effort and time Specialty goods- occasional purchases and expensive and require market research Greenwash Dishwasher is classified as a shopping product which is a high risk product where consumers like to shop around for the best features and price in the market.

Consumers generally invest time and effort before making the final buying decision. 4. ANALYSIS OF COMPETITION USING PORTER’S 5 FORCES MODEL 4.1 COMPETITIVE RIVALRY There are several companies manufacturing dishwashers in the market but the combination of features offered by Greenwash is unique and very few companies offer the same. Greenwash face healthy competition that ensures them to keep innovating and improving their product and after-sales service to increase the market share. 4.2 THREAT FROM NEW ENTRANTS Greenwash face little threat from the new entrants because there are lot barriers to enter in the electronics appliance industry.

Initial investment is high and the products are generally involving high risk. Also, Fake Company also has a strong, established brand name which has a strong customer base and high market share. Thus, it is difficult for new players to enter the market and become a threat to Fake Company. 4.3 THREAT FROM BUYERS The biggest challenge for marketers these days is the changing consumer preferences that manufacturers must identify and satisfy. However, Greenwash barely face that challenge because of its innovative design, new technology features and energy-efficiency.

It satisfies and meets customers’ demands completely. 4.4 THREAT FROM SUPPLIERS Fake Company maintains excellent relationship with its current suppliers and enjoys a high credit rating which indicates their credibility in the market. As the new product line is introduced, new suppliers are also employed. Despite new suppliers are introduced, the relationship of trust and honesty is shared which minimizes the threat from the supply chain partners, 4.5 THREAT FROM SUBSTITUTES The substitute for Greenwash dishwasher is housemaids who come and wash the dishes at the customer’s house.

The cost of having a servant at home is much higher in terms of price and time convenience because Greenwash consumes less amount of electricity and allows you to use whenever you want and is a one-time investment. On the other hand, the cost of hiring a servant is monthly with no or little time feasibility as he shall be washing the dishes only once or twice a day. Thus, Greenwash dishwasher has little threat from substitutes and it is a preferable option for most households. 5. SWOT ANALYSIS Strengths Greenwash dishwasher has following strengths: Energy-efficient and consumes less water Visually appealing Time-efficient Accommodates up to 50 dishes at a time Operates quietly Adjustable top rack Collapsible tines for oddly shaped cutlery Hidden buttons to avoid kids play with them Weaknesses The following weaknesses have been identified: High production cost Lower profit margin Produces smell Does not dry properly Opportunities Fake Company can tap into undiscovered opportunities to maintain its market share: New technology Market research and identify changing consumer needs Improve the current product’s weaknesses Threats Greenwash might face following threats in the future: Competitors identifying Greenwash’s weaknesses and offer better dishwasher Established eltronics manufacturer introduces high-quality dishwasher Economic instability Increase in the cost of raw materials Bibliography