Marketing Goals

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Marketing Goals

To reach our target market as intensely as possible, have effective promotional plans and keep promotional overheads low. This will be done by nation-wide distribution through large retailers.

Product

Five Degrees of Innovation is introducing an new plastic label remover that fits onto an individual thumb in order to scrape unwanted adhesive labels.

Sales Projection

We projected our sales based on the Contandina case 80%, 30% rule. First we found our main target segment which is 15,015,300 people nation wide. We then adjusted this figure for the amount of awareness (30%) we can generate and distribution channels we can attain (ACV of 35%). This gave us a figure 921,914 people who will buy our product in the first year. Market penetration will increase in the future years as the marketing budget is raised to increase awareness.

Figure 3-

Base

Year 2000 2001 2002 2003 2004

Penetration 3.1% 4.6% 5.85% 5.26% 4.68%

Market Size* 15,015,300 15,015,300 15,015,300 15,015,300 15,015,300

Sales 921,914 1,382,871 1,756,027 1,580,424 1,404,821

Total Sales' 7,046,057

To account for alternative scenarios we changed the percentage of penetration to come up with a best and worst case scenario. We changed the awareness and ACV by 5% from the base case to come up with the sales projections for the best and worst case. To achieve sales projections in the worst case, we assume that the product sales did not pick up as quickly and the awareness did not increase as expected.

Figure 3-

Best

Year 2000 2001 2002 2003 2004

Penetration 4.09% 5.85% 7.24% 6.58% 6.58%

Market Size* 15,015,300 ...

... middle of paper ...

... Our sales team will be aided with possible sales promotion and discount allowances directed towards these wholesalers in an effort to stimulate demand. Our sales force costs will be the cost of the sales supervisor plus an annual salary of $20,000 each for our three representatives.

Distribution

Our strategy is to attain distribution nation wide and keep distribution costs to a minimum. This will be done by riding the distribution networks of big nation wide retailers These include Office Max, Staples, Office Depot, and Wal-mart. We will be responsible for shipping our product to the distribution centers of these large chain stores. We ar4e responsible for the setup for the displays in the point of purchase. This strategy helps us keep our variable shipping cost to only $0.07 per unit. The combination of these distribution networks has a -% of reach.

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