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REACHING TO SAFTY LIFE

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

30 25 Target 20 market 15 in % 10 5 0 Each target by system

Carbon monoxide alarms Home alarm systems

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

Quantified, Quantifiable, Profitable


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

Internal Strengths and Weaknesses

Strengths
Production development Market ability Quick distribution capability

Weaknesses
New business High research and development costs Capturing of market shares in a mature market

Product Life Cycle

Product life cycle


Market introduction Market growth Market maturity Sales decline

Market Introduction

Customers not familiar with new product

Sales low

Use informative promotion


Tell customers about product Introduce advantages of our product

Company will see loss during intro. due to


Cost for promotion Product development Place development

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

Persuasive very important at this time

Competitors products becoming so similar to ours

Price sensitivity due to this

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

Decision Making Process


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

Means End Chain


Product

Smoke detector/air freshener


Two in one system provides convenience, safety and comfort within a reasonable price Physical- safety device, refreshining odor Psychological- comfort of working safety device, convenience in two of two in one device Reasonable price, convenience, safety

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

How to manage channel relationships

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

Customer Service level desired

Place Objectives-Medium Care

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

Degrees of market exposure desired

Types of middlemen needed

Retail store, building contractors, home cleaning services

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.

Brand Positioning Statement

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.

Resources

http://factfinder.census.gov/servlet http://housing.state.mt http://www.hbabillings.net/permits/permit_res ults http://hbabillings.net/pdf/06participatingbuilde rs.pdf https://secure.spectronics.com

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