Taking a New Product to Market - Essay Example

Taking a new product to market AFFILIATION: Taking a new product to market Introduction of Company G Company G has been present in the electronics market for many years and it has ensured that it meets the demands of the small appliances market effectively. The success of the company lies in the fact that it presents a superior quality of electronics to the customers that give them value for their money and can work efficiently for an extended time period. The electronics market is highly competitive in USA (Euromonitor, 2012) and Company G has to remain alert about the offerings of the leading companies so that it can remain competitive and offer the best alternative options to the customers. Product Support of the Mission Statement There is a huge demand of mobile phone and smartphone charger that is available in small size like a credit card that can be carried around easily. As the mission of the company is to provide its customers with innovative electronics solutions so that the lives of people can be enhanced and made convenient, this product will definitely be a valuable addition in the consumers’ lives. Since the customers are looking for various options in each product category, this small charger will be available in three ranges i.e. standard USB jack, Micro USB jack and mini USB jack. The competitive edge that this product will have over others in the market is that it will be water resistant; such kind of option is still unavailable for the mobile phone and Smartphone users. The key features of the phone charger will be that it will only take thirty minutes to charge the phone completely and ensure that the battery life is extended twice the existing life. The brand name will be ‘ChargeOn’. Product Classification According to the three-way products classification system, the products are either classified as convenience goods, shopping goods and specialty goods (Kurtz & Boone, 2009). Since the phone charger is among the less frequently purchased items and adequate attention is given to the factors such as price, quality, durability and convenient access to the place, the small charger is adequately placed in the shopping goods category. This product will be a one-time buy as the chargers are purchased once and the consumers want to be ensured that they are highly durable along with proper functional capabilities. Target Market Every product is developed with the aim of meeting the requirements of a particular target market. For this small phone charger, the target market will comprise of both males and females, young students and professionals who are always in a rush and people looking for quick rechargeable solutions for their phones. The price will be reasonable so that everyone in the region can conveniently purchase ChargeOn without getting worried about the price constraints. Analysis of Competitive Environment The industry of consumer electronics has been growing at an accelerating pace in the US market. For in-depth analysis of consumer electronics market, Porter’s Five Forces model is being applied. The key elements of the model ensure that all crucial elements of the industry are properly evaluated (Grundy, 2006). Following is the detailed information about the competitive environment of the consumer electronics market: 1. Threat of new entrants – In consumer electronics market of USA, the threat of new entrants is relatively low as entering this industry requires huge amount of capital investment. Other barriers for the entrants are the continuous need of innovation and even the stringent government regulations; these factors make entry in this industry a difficult endeavor. 2. Bargaining power of buyers – The bargaining power of Company G’s buyers is high for the small appliances market as the customers have to buy the products of a particular brand. Since the switching cost to other brand is high, the customers will not easily change the company. 3. Bargaining power of suppliers – Since Company G has developed cordial relations with suppliers along with strict terms and conditions, the bargaining power of suppliers is low. As these suppliers are small entities of the companies, they have weak bargaining power. 4. Rivalry among competitors – The industry rivalry is intense and the exit cost is high. The main reason for intensified competition is that the product life cycle is relatively shorter and huge amount of investment is required in R&D activities. 5. Threat of substitutes – ChargeOn will be the latest innovation so it will have low threat of substitutes. As Company G will have patent rights so no other leading company will be allowed to introduce similar type products in the market. SWOT Analysis In order to assess the potential of Company G, the SWOT analysis is a vital tool as it will ensure that all strengths, weaknesses, opportunities and threats are properly identified and the marketing strategies are developed in compliance with them (Danaher & Rossiter, 2011). Strengths The major strengths of the company are as follows: 1. Highly efficient production process – In order to reap the benefits of low-cost production methods, the superior quality equipment are employed that will allow the customers to have excellent quality products at affordable prices. 2. Extremely appealing product ranges – All of the products are available in a huge range so that the customers can find one best option compatible with their requirements. The brand has a strong market position that can easily attract the customers when new products are launched. 3. Strong financial position – The company has a low debt-to-equity ratio along with strong credit rating which shows that the company holds a good financial position in the market. Weaknesses Some of the weaknesses that have to be addressed by the company are: 1. Need of new suppliers – Since the raw materials’ requirements vary a lot, it needs to keep on looking for new suppliers who can provide them the required things at low prices. The search for new suppliers causes inefficiency in productions of the desired products. 2. Poor marketing mix – It is mentioned that the marketing strategy is not properly designed and it is evident from the fact that it is unable to achieve the targeted goals efficiently. 3. High investment needed for R&D – Although it has strong financial position but it needs to allocate sufficient amount of funds in R&D activities so that it can quickly deliver new and innovative products in the market. Opportunities In order to exploit available opportunities, the company is undertaking initiatives to employ resources for gaining an edge in the market: 1. Diversification into other markets – As it is currently offering the products in the small appliances market, it can diversify into other consumer electronics like mobile phones so that they can enhance its brand image in the market. 2. Personalized services – The latest trend in the market is of customized services; Company G can employ the resources that will allow it to make the products according to customer’s specifications like done by Dell so that it can increase its market share. 3. Prompt customer service – When any problem is faced in the products, the customers want quick services. Hence, Company G can start offering mobile customer services so that the customers can get their issues resolved right at their premises. Threats Following are some of the challenges that are encountered by Company G: 1. Government regulations – Since the government regulations keep on changing regarding business environment, Company G will have to remain aware about the legal rules and policies that can impact its business operations. 2. Low-cost producers – As it is currently a low-cost producer, the other competitors can start offering the similar products at low prices that can drastically affect its customer base. 3. Economic fluctuations – The economies of every country are more turbulent than any other factor. US economy is going through tough times as the unemployment rate and inflation are increasing at an accelerating rate, GDP is falling and economy is undergoing a declining phase (Euromonitor, 2012). Core Competencies The core competencies that can provide the company an opportunity to earn additional amount of revenue are strengthening the brand name by offering a wide array of products with exclusive range of options and allocating available funds in proper places so that the Return on Investments is adequate for the company’s smooth running. Marketing Objectives The marketing objectives of Company G are as follows: 1. To launch the small phone charger in the USA market by the end of June 2013. 2. To make sure that the customers are made aware about the new launch by 25th June 2013 by displaying the advertisement on billboards and in newspapers. 3. To offer the product at $40 which is equivalent to the price charged by other competitors. 4. To ensure that the products are made available in all states of USA. Marketing Strategies In order to make sure that the objectives are effectively attained, following marketing strategies will be implemented: 1. The customers will be informed about the product during the pre-launch phase in May 2013 via the social networking sites like Facebook, Twitter and LinkedIn. 2. Advertisements of the product will be ready by the end of May 2013 so that it can be aired in the month of June 2013. The print ads will be created by the advertising agency so that the customers will have first point of interaction with the image of the product. 3. The products will be displayed at the counters of the leading stores so that it is the first source of attention for the customers. The above marketing mix will provide an opportunity to the organization to make effective use of all available mediums for capturing the attention of the right target market. Every crucial aspect of introducing the product in the market is properly covered as it is highlighting the way in which ChargeOn will be initially launched along with the product features that will be promoted in the advertising campaigns. The price and placement is decided in accordance to the target market to ensure accessibility of the desired product. Action Plan Tasks for each marketing mix element Deadline Responsibilities Product 1. Initial production 23 February 2013 Production and Marketing departments 2. Test Marketing 23 March 2013 3. Complete production and launch 1 June 2013 Promotion 1. Organizing an event for pre-launch phase 30 April 2013 Marketing department 2. Advertisement development and finalization 24 May 2013 3. Content available on online sources 25 May 2013 Place 1. Available at the company event 2 May 2013 Marketing, Production and Distribution departments 2. Distributed in key areas in US 25 May 2013 3. Available in leading stores 30 May 2013 Price 1. Market survey for getting price quotes 2 February 2013 Production and Marketing departments 2. Finalizing contracts with suppliers 1 March 2013 3. Getting input from customer about final price 15 April 2013 Effectiveness measurement procedures Since the success of the marketing strategies is dependent on its effectiveness, following measurement techniques will be employed to ensure that ChargeOn is able to attain the desired market share: 1. The value of sales will be compared to the estimated sales so that any deviations can be noted. 2. The feedback from the users will be taken to ensure that the product is up to the mark and meets the expectations of the customers. 3. Online review of comments will be undertaken to get an idea about the viewpoints of the customers as they post their comments on the discussion pages and company’s comment blog. Time line As the product is to be launched in the market by June 2013, following are the timelines that have to be implemented by the company: 1. The product development process will take place in between March to May 2013 so that the first batch can be released in the market at the time of launch. 2. The advertising plan will be designed by the end of April 2013 so that the marketing strategies can be implemented effectively. 3. The event will be put into implementation phase by the start of May 2013 so that it can take place at the end of May 2013. Conclusion Hence, if all the phases of the marketing plan are properly implemented, then there are huge chances that the product is successful in the market. Company G will ensure that the customers’ requirements are fulfilled so that they can have the excellent quality phone charger that will provide them the superior quality charging alternative. When introducing a new product in the market, the organization needs to carefully review all the details so that the launch of the new product can prove to be successful for the firm. References Danaher, P.J., & Rossiter, J.R. (2011). Comparing perceptions of marketing communication channels. European Journal of Marketing, 45(1/2), 2-46. Euromonitor. (2012). Mobile phones in US. Chicago, USA: Euromonitor International Inc. Grundy, T. (2006). Rethinking and reinventing Michael Porter’s Five Forces Model. Strategic Change, 15, 213-229. Kurtz, D.L., & Boone, L.E. (2009). Contemporary Marketing. 2nd ed. Mason, OH, USA: South-Western Cengage Learning. Shimp, T.A. (2010). Integrated marketing communications in Advertising and Promotion. 8th ed. Mason, OH, USA: South-Western Cengage Learning. Read More