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Market Targets
India to emerge largest security market in next 10 years: report India, which currently shares 3.6% of global homeland expenditure, will require to take it upwardly to an extent of 6% over the next decade to effectively take on emerging security risks, a Assocham-KPMG report said.
Growth Targets
Target market takeover would be 15% on only fire alarms Target market size for fire alarms and carbon monoxide would be 20% of market Target market size for all 3 systems would be 30%
Targets
Fire alarms
Threats of Competitors
No other company produces an air freshener in combination with smoke alarm, security system, or carbon monoxide detector Possible competitors
Fire alarm producers Carbon monoxide producers Security system producers Air freshener producers
The two major brands, glade and renuzit, are both owned by conglomerates One is a publicly traded German company Henkle and one is a private company SC Johnson Both have been in business for several years offering a variety of products making the home cleaning product market very profitable
Strengths
Production development Market ability Quick distribution capability
Weaknesses
New business High research and development costs Capturing of market shares in a mature market
Market Introduction
Sales low
Market Growth
Stage for biggest profits Rapid sales Wide marketing mix Competition will enter We will continue growing product and increasing benefits
Market Maturity
Sales level off Competition begin creating variations Profits will decline through this stage due to
Rising promotion costs Competitors cutting their prices
Sales Decline
New products introduced to replace old Strong product to create profits until the end
Successfully differentiating our product Customer loyalty
Forecast
New home construction from 2000-2004 is 25,188 House formation going to rise at an average of 1% per year to reach 384,000 households in 2010 485 single family housing constructions permits given in 2005 11 multi-family new construction permits given in 2005
# of local builders
Classic Design Homes Cougar Construction Dan Fluery Construction Dan Lowe Construction Kw Signature Homes McDadden Construction Skyline Builders Montana Wells Built Homes
Segment Strategy
Homogeneous- target customers should be as similar as possible (all are homeowners, renters, etc.) Heterogeneous- customer in different segments should be as different as possible with respect to their likely responses (wide variety of people, backgrounds, income, etc.) Substantial- Segment should be big enough to be profitable Operational- segmenting dimension should be useful for identifying customers and deciding marketing mix variables
Dimensions
Behavioral
Needs- economical, functional Benefits Sought- Continence for homeowners Brand Familiarity- recognition- this is an advantage because there are many room deodorizers in the market Thoughts
Favorable- length of time between replacements, possible remote adjuster to control amount of scent release Unfavorable- difficulties switching cartridges, regulating strength of smell
Dimensions
Behavioral
Rate of use- heavy because it is always on Purchase relationship- intermittent due to time between replacement cartridges Kind of shopping- new unsought products Type- or problem solving- limited problem solving Information required- medium due to new product
Dimensions
Geographic
Region of world- North America Region In country- Pacific, Mountain, West North Central, West South Central East, North Central, East South Central, South Atlantic, Middle Atlantic, New England Size of City- any size, all consumers
Dimensions
Demographic
Income- any income, all consumers Sex- Sex neutral Age- 18 and up Family Size- any size of family Family Life Cycle- any family life cycle Occupation- No occupation preference; all renters, homeowners, emphasis on housewives Ethnicity- no ethnical boundaries Social Class- any and all social classes
Identify the problem- Consumers needs are to protect home while giving home a refreshing scent Gather Information- Consumers will gather information through yellow pages, internet, newspaper, home magazines Evaluate Alternatives
Smoke detector only low costs Air freshener only- low cost Smoke detector & air freshener- intermediate costs
Make Decision- Consumers will choose combo because they get more for their money Evaluate Decision- Consumer will be satisfied because product gives them sense of safety and freshens home
Product
Attributes
Consequences
Value
Perceptual Map
Luxury Priced
General *ReNuzit
*Oust *Glade
Specialty
*Fresh Alert *Vapor Plug
Economically Priced
Promotion Objectives-Inform
Attention
Strategy- Newspaper advertising, internet advertising, yellow page advertising, home magazine advertising
Strategy- Convenience, word of mouth, sponsorship if demonstrations Strategy- Coupons, rebates, warranties Strategy- Inform customer of additional products, Inform customer of changes in product
Information
Desire
Action
Place Objectives
Producers (ourselves) will lead our channel We will also have a channel captain to take care of any and all conflict that may get in the way Inventory Level- level to meet sales + 10% Transportation Arrangements- will ship directly from our warehouse to customer Facilities needed- Factory, warehouse, office space Information technology needed- need to know and keep up with the safest detection ways possible and ways to keep freshener quiet and leaving a continuous smell
Channel Systems
Will be sold using multi-channel distribution to customers (builders, consumers, etc.) in order to get our product out there and being used.
Intensive distribution
Price Objectives-Sales
Current hardwired smoke detectors run from $15$130 Automatic air fresheners can be purchased for $10-$20 Objectives: A sales oriented approach focused on unit sales growth Competition: Although there are no current competitors, success of our product would spurn rapid copying and we could not match the resources of big name brands. Fire alarm companies and Fragrance manufactures could form alliances.
Fresh Alert produces specialized room deodorizers installed inside smoke detectors, fire detectors, and carbon monoxide detectors. We protect your home while delivering a refreshing scent that is easy and convenient to maintain at a very economic price.
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