Executive summary
The smart home integrated energy efficiency product will come in packages of silver, bronze, and gold to target consumers and homeowners in the United States of America. Bronze packaged products will be marketed to consumers of lower income bracket while energy efficiency products that are packaged in silver and gold will be marketed to high-income homeowners. This product is fabricated to ensure that it reduces the amount of energy consumed by electric appliances and in effect reduce the electric bills that are paid by consumers. Due to the complexity of this product market representatives will be used to visit different homes in the chosen city with the hope of publicizing the product. The product's success in penetrating the market will be measured through the sales parameter that is set and the profitability indexes that are determined by the management team.
Brief description of the product
The product will be a smart home integrated energy efficient product which is designed to ensure that electrical appliances which customarily consume high amounts of energy are effective. This product will accomplish this objective by regulating the ampage that is required for high energy products. The product will be built with a harmonic resistant capacity that will ensure that users of different electrical appliances are able to save up to 40% of their electric bill. Additionally, this product will be used to charge mobile phone devices. Some of the devices that consume a lot of energy are electric cookers, desktop computers, washing machines, refrigerators, air conditioners, and microwaves (Schwarz et al. 2015). This energy efficient product will be integrated with a smartphone which will enable an individual to control the consumption of power of a device that is plugged in through an application that will be on their smartphones. The energy efficient product will be packaged in gold, silver, and bronze.
Mission statement
Marketing goals and objectives
Over the next twelve months, the marketing team aims to sell more than one million units of this energy saving product each retailing at the cost of $100.
In a time period that is designated to launch the product, the organization aspires to capture a significant market share with this smart home integrated energy product.
Within the next twelve months, the team hopes to widely publicize this new product in order to attract new clients to buy this product from the company.
SWOT analysis
The strengths of this product are that it is an integrated energy efficiency product which uses smart technology as a way of controlling it. Through an application that is downloadable in the android play store, the users of this gadget will be able to exercise remote control over their devices at home (Schwarz et al. 2015). As a matter of fact, this application will enable an individual to switch off the gadget remotely in the event that they leave their home in a hurry. Its overall strength is in the ease of use.
The weakness of this product is that it uses a highly sophisticated technology which involves the use of a harmonic resistant capacitor to regulate the amount of amphioxus that is employed by every gadget (Goodrich, 2015). Explaining this technology to the clients may prove to be difficult since most consumers do not prefer products that use complex technology for fear that it has not been tested in the market and that it could ruin their expensive gadgets.
The opportunities that are available in the market are caused by the gap that exists due to the high utility bills that many individuals have to pay for using their gadgets for short durations of time (Goodrich, 2015). Moreover, there is an opportunity in the market for this product in the occurrences where individuals who forget to switch off their gadgets would like to switch them off remotely without incurring any electricity bills.
The threats of this product are that it is highly dependent on the current make of electrical gadgets which consume significant amounts of power. In the event that these products are faced out and replaced with other energy efficient products, it could be possible that the company (Goodrich, 2015) would lose revenue since the company would be rendered obsolete. Additionally, there is a threat of competitors who could copy the basic design of the product and replicate it.
Industry analysis
Currently, there is pressure on the industry for electrical gadgets to be manufactured with features that allow for a lower energy consumption (Andaleeb, 2016). It is due to this that some companies have opted to produce devices that consume lesser amounts of electricity. Nevertheless, most microwaves, electric cookers, refrigerators, iron boxes and washing machines are still known to consume high amounts of energy thereby leading to high electricity bills (Ryan, 2016). These trends are beneficial to the company since they will ensure that the organization is able to increase its profitability.
Market segmentation
The market segment that will be targeted by the marketing team of this product is mainly that of individuals who are aged between 30 to 40 years. The choice of this market segment is based on the information that most consumers who fall in that age bracket are middle age consumers who have young families (Ryan, 2016). Due to their financial constraints, they are more likely to but this energy efficient device which is smartphone integrated. Furthermore, customers in this market segment are more adept to technology. While the energy efficient products packaged in bronze will be sold to clients of lower income, the product which is packaged in silver and gold will be sold to higher income consumers.
Marketing Research
Secondary research of the consumer segment that is in the age bracket of 30 to 40 years has indicated that these consumers own a number of high energy consuming gadgets. This is due to the fact that these families have high household demands which require them to have microwaves, refrigerators, washing machines and air conditioners (Ryan, 2016). Primary research across this market segment would be achieved through sending market representatives with questionnaires that would also enable them to carry pout interviews with prospective customers in this age bracket.
Market positioning
Strengths of the top competitors
Top competitors in the industry have a larger market share since they have been in the market for a longer duration.
The top competitors have considerable publicity in the market due to their consistent and persistence advertising in mainstream media.
Competitors to the product enjoy customer loyalty due to some of their consumer incentives such as discounts.
Competitors have a stronger presence in the leading retail stores due to their popularity.
Weaknesses of the top competitors
They have been complaining that the competitor's products are defective and that there is a problem in the integration system with the smartphones.
Competitor’s products have a higher price than the products that are being marketed by the organization.
Some similarities exist between the products that are manufactured by the company and those that are produced by the competitors. The major similarity is in the technology used and the purpose for which the gadget is designed to execute. The value proposition that will be delivered to the target market is that the smart home integrated energy-efficient device is highly convenient to the consumer. Additionally, customers will be informed that this device is affordable compared to the other products that are in the market (Ryan, 2016). Finally, the value proposition will be in the warranty of two years that is issued by the company on this product. The value chain that will be employed will enable the company to supply these gadgets to the consumers through retailers who will act as intermediaries.
Branding
The product will adopt a brand personality which will portray the image of a reliable product. (Kotler et al. 2015) This is a good choice because it is important that an energy efficient product is reliable to its users who rely on its durability and its ability to be compatible with electrical appliances without damaging them.
Marketing Mix
Product strategy
The features of this product are that it is a small portable gadget which can easily be carried in a box. This product has an edge of it being priced lower than similar devices that are sold by competitors. In addition, it has been tested to ensure that the occurrences of malfunction are minimal. This will be a brand extension that is in the stage of product launch (Ryan, 2016). A warranty of two years will be given to customers to reduce the perceived risk of using the product.
Pricing strategy
This product will be priced at a lower level as compared to the price of similar products that are sold by the competitors (Andaleeb, 2016). In time the company will issue loyalty products and other customer incentive products that include discounts. This will be done with an aspiration of increasing the number of sales.
Place strategy
The product will be taken to the consumer through market representatives and online ordering. In the initial phase, the company will not use any retailers to ensure that they can establish customer loyalty (Andaleeb, 2016). This place strategy is the best option since it will enable the business to receive direct feedback from business clients.
Promotion strategy
Promotion and advertising will be done through social media networks, mainstream media and in online platforms such as the company website. The direct response type of advertising that will be used will be integrated with television and radio advertisements that will be done to popularize the product (Ryan, 2016). Sales people will be incorporated into the promotional mix to ensure that they can handle the technical elements of the product.
Marketing Metrics
The number of sales made and the share market captured by the company in a duration of 12 months will be used as a performance indicator to measure whether the company has achieved its objectives (Ryan, 2016). The level of profitability will also be considered in determining the business’s performance.
References
Schwarz, P., Depken, C. A., Herron, I. M., & Correll, B. (2015). The effect of us electricity prices on the purchase of energy-efficient appliances and implications for the effects of carbon pricing.
Goodrich, R. (2015). SWOT analysis: examples, templates & definition. Business News Daily.
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital generation. New Jersey: Kogan Page Publishers.
Andaleeb, S. S. (2016). Market Segmentation, Targeting, and Positioning. In Strategic Marketing Management in Asia: Case Studies and Lessons across Industries (pp. 179-207). Emerald Group Publishing Limited.
Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., & Yildirim, G. (2014). Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4), 534-550.
Kotler, P., Keller, K. L., Manceau, D., & Hémonnet-Goujot, A. (2015). Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice Hall.
