Developing and Marketing the Pet Tracker - Case Study Example

Introduction

Technology commercialization is one way of benefiting from new ideas; however, there are several aspects of the business environment that need to be observed for a business to be successful (Kerin, 2006). Therefore, the company ought to fully understand the market in order make profitable investments. The pet tracker company has invented an automated tracker which it plans to start commercializing. The purpose of the study is to determine an appropriate strategy for developing and marketing the pet tracker.

Strengths

• Mobile automation
• Minimal operating costs
• Relationship selling

Mobile automation: Considering that this is a new technology with the ability to relay messages of lost pets to social networks, the idea will be highly welcomed by pet owners. This will give the company an edge over competitors who still rely on manual trackers.

Minimal operating costs: With an automated system that can be controlled with a smartphone application, the tracking company can keep track of several pets with an application; hence, they will not need to hire many employees who would have been charged with monitoring each tracker (Kotler, 2000).

Relationship selling: The level of interaction for this new company is high; it will start with small scale production and sell directly to consumers. This interaction will assist the new company to address specific issues such as ways of improving the product. This will help the company to build strong customer relationships, hence increasing sales.

Weaknesses

• New to the market
• Lack of experience

New to the market: Considering the fact that the company is new in the market, the possibility of customers having awareness of the product is low. This will have a negative impact on the volume of sales because of low customer turnout (Morris, 2011).

Inadequate customer experience: It is true that the company will face challenges in addressing the attitudes of customers towards a new product in the market. This is because of the little interaction of the new product with the customers (Kotler, 2000).

Opportunities

• Growing demand
• Untapped technologies

Growing demand: According to recent research that was conducted by the SPCA, 15% of pets were found to have been lost in a cluster sample of 1005 households (Morris, 2011). This percentage of lost pets is high; hence, there is room for more companies to manufacture pet trackers.

Untapped technologies: Social media has been largely embraced by most people in the world today; however, existing pet tracking companies have not taken advantage of it. Technology is rapidly changing, therefore, there is opportunity for companies to invent new technologies.

Threats

• Competition
• Poor understanding of distribution channels

Competition: New companies are likely to face competition from established companies in the industry. This can be a major obstacle to the success of a company, which may be forced to sell at low prices leading to losses.

Poor understanding of distribution channels: Competitors’ knowledge and control of distribution channels give them an advantage in market control. This makes it difficult for new companies to distribute their products well.

Developing competitive advantages

It would be advantageous for the company to capitalize on its strengths to win customers. Considering that this is a new technology, the company should be able to demonstrate the ability of the tracker to relay pet information to social media in the region. The social media message should show how this is advantageous over other trackers already in the market.

Existence of untapped technologies is one of the great opportunities of the company. Keeping in mind that the company is innovative (Kotler and Armstrong, 2006), the company should introduce other technological ideas in addition to that of automatic relay to social media. With more features, the product is likely to attract more customers and make more sales.

One of the weaknesses of the company is its newness to the market. The company needs to embark on marketing itself and developing its brand. This can be done through giving gifts and donations of the trackers to less privileged people in society.

Developing strategic focus

Marketing the chip company requires a good plan because the company has to achieve more with limited resources. The company should, therefore, be able to identify its customers and focus more on the solutions it provides.

In this case, pet owners would be the target market. To win these customers, there are a number of factors the company needs to consider (Hanan, 2004). It is important to understand the competitors’ pricing procedure and the product features.

The company ought to focus more on the strengths of the company over the weaknesses to operate optimally in terms of sales. All efforts should be geared towards creating awareness to the pet owners and also establishing the company brand. These strengths include the new mobile technology which other companies do not have. This is the selling point of the company.

There is also an urge to focus on the requirements of the target market. The pet owners need something to track the animals. This is one of the solutions that the company can provide and ought to be made well known to the customers (Hanan, 2004). The ability of the tracker to relay information about lost pets to social media is an added advantage which the company ought to capitalize on marketing the tracker.

Value proposition: There is a need to convince the customers about the advantages of the products produced. This is in comparison to those produced by the competitors (Kotler, 2000). The marketing message should be able to convince the pet owners of the product’s benefits compared to those that already exist in the market.

Brand Development: Branding is an important parameter in creating an appropriate image for a company. Considering that the company is new in the market, it should focus on winning the confidence of potential customers. This can be achieved by partnering with well-established companies which offer pet services.

PRODUCT DEVELOPMENT

Idea brainstorming

Developing a new product can make a business successful, or result in its failure (Kotler, 2000). A business idea has to be well evaluated before it is developed. The company needs to conduct a survey of potential customers to determine what they expect in a new pet tracker. The company shall discuss all the possible ideas with the management team and list the advantages and disadvantages of each idea. This will enable the company to identify the best ideas for the new pet tracker.

Market Evaluation

The company has to conduct a research program on the employees and potential customers of the company to find out which idea is more appealing to them (Hanan, 2004). This can be done through emails and social media. Analysis of the market is necessary to understand how existing pet trackers function and what improvements can be made on the new pet tracker. Market assessment will enable the company to understand challenges and opportunities in the industry.

Definition of product goals

It would be important for the company to stipulate the specifications of the pet tracker. This includes the functions, size, features, and market price of the product. The product size and weight are very significant. The product should not be too big for the pet, and it should be light enough not to strain the pet.

Design and manufacture of a tracker prototype

With the crucial features plainly laid out, the company can proceed to hire engineers to design the product and produce product prototypes. In designing the tracker, the engineers should consider the exterior design (Hanan, 2004). In electronics, appearance is critical, and, therefore, the engineers should design an amazing product that can capture the customer’s attention.

Market Testing

It is important for the company to test the market to find out whether the tracker sells well and find out the reason why product sales are low or high (Kotler, 2000). Testing enables the company to determine what to improve on before the product is finally launched.

Launch the product

Based on the results of market testing, the company can officially produce the pet trackers and launch them. The company should evaluate how many products to produce and make them available for distributors and customers.

Marketing the product

The company has to come up with robust plans to market the tracker (Kotler, 2000). The company can put up advertisements on electronic and social media. Also, the company should employ a marketing strategy that can effectively reach potential customers.

Product management department

Listening to customers is a key factor of product success. The company will have to develop a department which mediates between the technical department and the customers. Furthermore, the department will listen to grievances from the customers and address their needs to ensure they are resolved by the company. This department will also monitor what the competitors are doing and come up with new ideas to ensure the product makes high sales.

Conclusion

It is necessary for companies to conduct thorough research of their markets so as to operate at their optimum capacity. Understanding the various strengths and challenges of running a business puts a company in a better position to operate at its best.