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... ... middle of paper ... ...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.
The company’s return on average equity nearly increased as well; in addition, long-term debt was reduced and stock prices soared. Negative Trends 1. Competitive pricing: Following the low operating costs, operating margin in the can industry dropped by 3% between 1986 -1989 due to; • Production capacity for beverage can increased by 7% in 1989 •
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.
It is shocking the extravagant amounts of money that companies are willing to pay to advertise their products. From spending millions of dollars a second to have a commercial air during the Super Bowl or hiring a well-known face to support their product, companies are willing to do whatever it takes to get their brand out there. Br...
The sales director proposed that if the firm were to reduce the price of Item 345 to FF15.00/m, they would be able to increase sales to 175,000 units (or 25% of industry volume). But if they were to keep the price at the current value of FF20.00/m, they would be able to sell not less than 75,000 units (or 11% of industry volume).
Christensen, C. M. (2000). Discovering What Has Already Been Discovered: Why Did Your Customers Hire Your Product? Case Study, 2.
Reviewing the company’s distribution and channel strategies may help determine the appropriateness of the strategies in the current market and if the company needs to make adjustments to their strategies. Also determining Keurig Inc.’s pricing strategies for consumer sales and aids the business in determining if their pricing strategy is appropriate for the current market. Lastly, identifying promotions for consumer sales helps Lazaris and the other leaders of Keurig Inc. determine if they must change their promotions to obtain the maximum profit from at-home-market sales.
During the first year, I produced 22,000 RC_RockHoppers. Each bike was priced at $700. I increased my advertising expenditures to $1,350,000; $450k was allocated towards television advertisements, $337.5k was allocated towards internet advertisements, and $562.5k was allocated towards magazine advertisements.
Today, advances in technology and design are providing many opportunities for new and existing businesses to re-invent themselves and their marketing strategies.
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.
Promotion will come in the form of indirect communication through such social media as well as face-to-face communication within the stores in areas that I plan to introduce the product to (Bovee, 2012, p.308). Using social media I believe it’s a great tool and the use of it could be exponential without spending a fortune to promote. Promoting within the store will better inform potential customers of the new product and hopefully encourage to purchase.
Two recommendations for promoting direct-sales through consumer and the business; One is to offer incentives to its customers and second is to motivate the business to promoting its products by advertisements, establishing sales competition for employees, participating in conventions, and by endorsing franchise of its products to retail stores.
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...
During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion program that had been proposed by the marketing department. Assume that you are an assistant to Leigh Jones, the financial vice president. Your first task is to estimate Harry Davis’s cost of capital. Jones has provided you with the following data, which she believes may be relevant to your task.
... right people by increasing the awareness about the product, its benefits and drawbacks. This is important for the success of a business.