In today’s world, there are many ways for a company to introduce a new product into the market. Tiger Tread, a new product from the National Chemical Corporation, is a great example. John Webster, marketing director, and Fred Farley, technical director of the company, knew that they had a very special product to introduce.
They wanted to try and introduce the product into two different markets: the industrial and business markets. They had a potential market size of 7 million vehicles and they want to market to the snow belt of America. The snow-belt represents about 50% of the nation. With that being said, the snow-belt market size would be 3.5 million vehicles. As a basis for forecasting the products sales, Webster had reviewed a study about winter driving habits of U.S. drivers. This study indicated that 18% of the cars in the snow-belt area got stuck at least 1 time during the winter. It also indicated that the average driver got stuck 1.6 times per winter. He knew that the study was several years old so he expected those numbers to be higher because of the increase in the production of smaller, lighter cars.
We know that it was going to be expensive to produce the product but we are confident that no matter the cost of production, our sales would greatly succeed the cost. The cost of producing a 5 oz. can was about 75 to 80 cents if they can produce 100,000 per month. If we were to produce 50,000 cans per month, that cost would rise by 5 to 10 cents per can. A 10 oz. can would cost about 25% more than a 5 oz. can would to produce. With those numbers, 100,000 5 oz. cans would cost us about $900,000-$960,000 per year to produce. 50,000 5 oz. cans would cost us $750,000. 100,000 10 oz. cans would cost us $1.125M-$1.2M a year...
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...other way for us to introduce our product can be through the car rental industry. We can use our salesforce to make calls to corporate offices in the snow-belt. Since our product is going to be very inexpensive, we can offer the company some samples. If all goes well, we will then negotiate a price to have Tiger Tread available to all of their customers. This would be a great way for the car rental companies to up-sell the product as well as a great way for us to introduce the product to households. Overall it would be a win-win for us and the car rental company.
By following the strategy that I have given, we can monitor the sale of our product. Once we see an increase in revenue, we can increase our advertising campaign to directly penetrate household markets through TV and/or radio. All of these numbers and strategies seem to line up for a successful product.
New product in the form of a brand extension in a segment that has not been touched.
In order to estimate the possible impacts of introducing Oxyglobin as a major product, it was assumed that Biopure would be able to produce and sell its full capacity of 300,000 units per year. As can be seen in Exhibit 1, the results of such an aggressive marketing strategy would yield a positive gross margin of between 49% and 66%, assuming the product was sold at a price of $100 to $150 per unit.
In this project I ran a lemonade stand for 30 days. I had a rough beginning, but as the game went on I began to learn about what the customers wanted. I made a net profit of $83.11 dollars. I figured out that I needed to make sure I didn't buy too much ice, or it would melt and I'd be wasting money on ice. I ended the game with a 100% in satisfaction, and popularity. I figured out the temperature had a correlation with the demand of lemonade. If it was hot, people wanted more ice, and were willing to pay more money for a cup of lemonade. If it was cold, people did not want much ice in their lemonade, and didn't want to pay much for a cup. The customers were more willing to buy a cup of lemonade if it had a good balance
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
The business intends to convince prospective customers to try out the prickly pear products. This will be through the use of radio, billboards, and television as the primary media channels. The reason behind the Company’s choice of this marketing strategy is that the advertiser has full control of the message that is
...y product. This will position the company as a key player and will help to increase market share.
Initial marketing through print ad and website led to some confusion on how this product should be introduced
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
These strategies are cost effective and at the same time will lead to fulfilment of organizational objectives as these advertisements will lead to both the increase in sales as well increase in the customer base through enhanced awareness to the public. Through this we will be overcoming our weakness of a limited marketing budget as this strategy is cost effective and taking advantage of an opportunity of a growing market. The market mix has been designed to be in line with these organizational objectives.
Trainer cost, manuals = 10@ $200= $2000, 3 x10 students= 30 tests @ $50=$150, total cost $2150 budget available $3500. Using the testing information of the 10 students the trainer in conjunction with the metric of students’ pre training performance (50 pieces per-hr.) Organization standard is 100 pieces per- hr.) Production cost is $10 per-hour wages, selling price per piece $20. The 10 students’ pre training was 50 pieces per hour, Organization standard 100 per hour@ $10 per-hour costs $1000 to produce, sells for $20, at 100 per hr. = $2000 - $1000= $1000 x10= $10,000 potential profit, at standard rate. At 50 per hr.at $10 per-hr. cost =$500 sells at $20 = $1000, $1000-$500=$500x10= $5000 potential profit. Post-training had 7 students’ producing 95 pieces per-hour and 3 students’ producing 75 pieces per-hour. The seven (7) students producing 95 pieces at $10 cost = $950, selling at 95x$20 =$1900, $1900-$950=$950 Profit x7 =$6,650. These 7 give the trainer a 95% return on training, the Three (3) producing 75 pieces per hour at $10 = $750
In writing the business plan, I determined our target market and our marketing strategy to gain a share of the market. I also had t...
Perform critical review of the results. Describe success of the marketing decisions and techniques. Synthesize a list of recommendations for marketing and management specialists employed by hi-tech startups in the manufacturing field.
We also make our product very nice and affordable and offer services that are currently unique, such as our return product service, where a customer purchase a sportswear and he doesn’t like it he could return it back at any time without any additional charges, most sports companies don’t give that kind of offer, so I think an individual will know that our company is unique because of the services we render. The total potential global market are made up of more than 7billion people because consumers groups are different like in age, level of income and also taste, Wear and Tear is going to be based on demographic segmentation has to we are targeting people within the ages of 18-40
· The Right Marketing Mix – Is the product right?, Is it sold in the
This strategy is very much about the business which is carried out as usual. In this strategy the marketer is focusing on both the product and the market opportunity.