Trap-ease America: The Big Cheese of Mousetraps - Case Study Example

Trap-ease America: the big cheese of mousetraps Body Executive summary Trap-ease is a new product striving to enter a previously existing market. The product presents realistic solutions to real human needs and therefore enjoys a large potential for profitability. As a new product, the new brand performs efficiently and promises better and reliable performance The cost of the product is low; this implies that the product is better than other products currently in the market. Despite such factors, the Trap-ease does not enjoy the profitability its inventors thought it would. Martha House, the president of Trap-ease America, the company dispensing the product is therefore at odds trying to establish the most appropriate way of introducing and positioning the product in the market in order to enhance its profitability. Background Trap-ease America is a large multinational company that has manufactured similar products before; this implies that the company understands the industry. The new product promises to revolutionize the market thus enhancing the profitability of the company. The preliminary performance of the product was satisfactory thus convincing the company that the product would enjoy both increased longevity and profitability. Despite such high hopes, the new product does not enjoy the profitability the company extrapolated it would a feature that raises fundamental management and marketing questions in order to reverse the ill fate. Problems/ issues Lack of effective reach of the target market Lack of appeal since the product did not attract the desired attention of the target market in order to achieve the desired profitability Lack of adequate competitive advantage, despite its new improved features the new product did not compete favorable against the other products in the market. Lack of effective advertising, the company did not carry out extensive advertising for the new product. Constraints Lack of adequate advertising budget, advertising is a costly process that requires adequate advertising in order to enhance the reach of a product’s reputation in the target market. Lack of cost effective means of production, this manifested itself, as Trap-ease America does not make adequate profits. The minimal profit margin per product neither safeguards the product the desired market reach nor enhances the profitability of the company. Lack of adequate market research and analyses in order to determine the most appropriate ways of doing business in the target markets thereby resulting in uniformed production thus the loss the company currently experiences. Criteria Situation analysis Strengths Simplicity of the product is the greatest strength of the product, unlike the previous sophisticated rattraps that often threatened the safety of the users. The new products are simple yet more effective and safer than previous brands of rat raps in the market. Additionally, the new traps are neat since they do not crash the rats thus causing messes. The new traps are cheaper; the cost of a product is a major micro economic factor that influences the purchasing pattern (Shankar & Carpenter, 2012). The fact that the new products are made of plastics make them cheaper than previous versions of rattraps made of metals. The new traps are more beautiful and equally presentable. Weakness The fact that people use the products and dispose them is a weakness since it will compel the consumers to keep purchasing a feature that may discourage the purchase of the products. The new traps do not kill rats, they trap thus compelling the users to either kill he rats or throw them away altogether with the traps. The plastics unlike the previous traps made of metals are weak and do not therefore present the strength most consumers attach to trapping and killing rats thus eliminating the menace. Opportunities The fact that people buy and dispose of the traps create an insatiable demand for the products. This implies that the new products will enjoy longevity coupled with reliable demand. As such, the demand for the products becomes insatiable thus enhancing the profitability of the products. The uniqueness of the products implies that it enjoys a global market. This will require the company to employ effective marketing techniques in order to raise awareness of the product in virgin markets, improve the reputation of the product in the old market and avail the products thus enhancing the profitability of the products (Pride & Ferrell, 2006). The use of the internet in marketing provides the company with an efficient platform through which to retail its products globally. The use of social media for example provides the company with effective ways of carrying out market researches and analyses thus informing the company’s operations. Electronic commerce on the other hand enhances the exchange of goods over the internet thus providing effective ways of overcoming the geographic factors that impair integration. Analysis of alternatives The use of plastics is strategic since it reduces the cost of doing business besides reducing the costs of the valuable products. The company can therefore redesign the plastics and color them effectively in a manner that disguises them to look like metals. Furthermore, the raw material does not affect the functionality of the products. Instead, it enhances their usability. Additionally, the company should employ effective marketing techniques capable of making the consumers overlook the material among other technical features of the products. The cost of the new products for example which is lower than the cost of the previous products is a fundamental competitive advantage that will make the possibly make consumers overlook the material among other features of the new products. Advantages The new products are cheaper thus affordable by many people. This expands the target market thus increasing the profitability of the new brand. The new products are recyclable. This implies that instead of disposing the products, a user can easily eliminate the rat before reusing the product. Disposing the products is therefore a personal decision and a feature of convenience the new product promises. The new products are neat thus uphold the cleanliness that every individual requires. Unlike previous versions of the products, the new traps do not crash the rats thus creating messes. As such, the new products present effective and safer ways of use thus presenting effective alternatives. Disadvantages The alternative products are not strong, the fact that they are disposable compromises the quality of the products. Screen alternatives Recommendations The company must carry out effective market research and analyses in order to influence equally effective niche marketing. The company must determine appropriate market niches before employing appropriate marketing strategies to ensure that the product reaches the target market. The company must consider alternative means of production. Plastics are cheap products, the company must therefore discover appropriate ways of obtaining reliable an equally cheaper ways of obtaining raw materials such as recycling plastics. The company must carry out exhaustive advertising of its product. Besides the traditional media, which include television, radios and newspapers the company, must use the contemporary media such as social media. Such are cheaper, offer an effective platform for the company to carry out parallel market researches, and analyses conveniently (Moore, 2006). The company must adopt efficient distribution mechanisms such as collaborating with both retailers and wholesalers. Additionally the company must develop its own outlets thus retail the products straight to the consumers. The company must develop reliable customer relations office. Such is the most cost effective way of marketing and improving the reputation of a brand. Furthermore, mechanism improves the confidence of both the retailers and wholesalers thus improving the profitability of the product. Implementations Short term The company must collaborate with both retailers and wholesalers. Additionally, the company must develop shops outlets in order to enhance the infiltration of the product in the market this improves the products’ reach and infiltration of the target market. The company must carry out extensive advertising of the product in both the traditional and new media thus increasing the target market’s awareness of the new product. The company must rebrand the product thus positioning it strategically in the market as a new product. This will improve the reputation of the product thus earning it the desired attention from the target market. Long term The company must determine alternative and cheaper ways of obtaining the raw materials. Recycled plastic for example are cheaper but requires the installation of expensive machines. The company must therefore work towards installing the expensive machines in order to reduce the cost of manufacturing the products (Webster, 1991). This way, the company will reduce the prices of the products thus enjoying increased profitability. The company must develop effective ways of improving the reputation of the product. This includes developing effective customer relations office. By resolving the consumers’ complains, rom the consumers, the company will improve the consumer confidence on the product thus improving its profitability. The company to develop effective interactivity with the target market, the social media provides effective ways of interacting with the target market thus providing effective ways of carrying out effective market research and analyses that help inform the production thus improving the profitability. With improved success, the company should engage in effective social responsive investing, this improves the reputation of the product thereby improving the profitability of the product. References Moore, G. A. (2006). Crossing the Chasm: Marketing and Selling Disruptive Products to Mainstream Customers. New York: CollinsBusiness Essentials. Pride, W. M. & Ferrell, O. C. (2006). Marketing: Concepts and Strategies. Boston: Houghton Mifflin Co. Shankar, V., & Carpenter, G. S. (2012). Handbook of Marketing Strategy. Cheltenham: Edward Elgar Pub. Webster, F. E. (1991). Industrial marketing strategy. New York: Wiley. Read More