Umbrella Man: Ultimate Umbrella
December 1, 2011
MKTG 341 Kim Stern
Conor Buckley
Rachel Keller
Elana Lilienfeld
Wangqian Shao
When the weather doesn’t cooperate with our plans (which it rarely does), it
slows everything down and makes everyday tasks difficult, even simply having a
conversation with someone walking down the street. Trying to talk to someone
walking next to you under another umbrella is awkward and can get messy;
umbrellas bump into each other and spray water at the people underneath, they get
tangled together and can tear, they cause two people to take up most space than
necessary because they have to account for the span of the umbrellas being next to
each other and bumping into one another. Sharing a regular-sized umbrella is
difficult; people have to squeeze too close together and typically they both end up
getting wet anyway, defeating the purpose of the umbrella in the first place. When
two people use an umbrella, only one person can hold it at a time, and it is difficult
and awkward to center an umbrella for two people if only one person can hold it.
Umbrellas are a necessity, however inconvenient and awkward they may be.
Umbrella Man is a new company seeking to revolutionize the umbrella
market by adding a twist to this ordinary essential. We plan to offer an umbrella
with the ability to expand and allow room for more than one person to fit under its
cover, taking the awkwardness and difficulty out of trying to go anywhere with
another person when the weather gets rough and you can’t do without your
umbrella.
Umbrella Man’s Ultimate Umbrella seeks to fulfill a need that has not yet
been met: the need for an umbrella with two handles and a wide enough top for two
people to fit comfortably underneath without squeezing too close together.
Umbrella Man’s mission is to provide its potential customers with a new and
innovative product built for two to three people. Its goal is to each a new market of
couples, friends, and families, providing each set of customers with dual
precipitation protection. Umbrella Man is a good-based business that has designed a
product to fit the needs and wants of its customers. The company has a sustainable
competitive advantage, focused on its dual handle and wide top options, something
that has not yet been done by any competitor. Ultimately, Umbrella Man is here to
serve those who have so far been neglected by big business objectives that create
one size umbrella for all consumers, leaving them a relatively small selection of
options.
The unique aspect of the Ultimate Umbrella is its hinged handle. The handle
of each umbrella (there are three canopy size options: five, five and a half, and six
feet) is 12 inches in length. The handle has a hinge that can be unlocked in the
middle, about size inches from the bottom. Once unlocked, this hinge allows the
bottom half of the handle to be split into two six-inch handles that can be held by
both people walking underneath its spacious canopy. This hinge is beneficial for one
person and for two. When only one person is using the umbrella, he or she can lock
the hinge and hold only the one handle, but when two people use the Ultimate
Umbrella they have the ability to unlock the hinge and each hold a piece of the
handle, putting it in the center so both are equally protected from the weather. Its
objective is simple: to provide sufficient and comfortable weather protection for
more than one person.
Because this is a new product hoping to fulfill the needs of an unsatisfied
niche of consumers, the Umbrella Man Ultimate Umbrella has unique strengths. New
product motivation exists in this good, because there is no other product in any
market quite like it. No other product currently exists on the market similar to the
dual-handled umbrella, which motivates Umbrella Man to become the leading
provider of the good. The only products even remotely similar to the Ultimate
Umbrella (or U2) are simply single handled umbrellas with wide canopies, which
still do not match the convenience of the U2. Innovation allows for creativity, which
Umbrella Man thrives on. By being the leading company to sell the dual-handled
umbrella, Umbrella Man will go above and beyond to satisfy customer needs with a
product like never before.
Umbrella Man is also strong in that its star product has location versatility.
The dual-handled umbrella is versatile in where it can be bought or sold, because
there isn’t one specific or isolated location in which it must be sold in order to be
successful. The Ultimate Umbrella can be sold through both large retailers and
small, local stores. Umbrellas are considered to be a convenience item, allowing
Umbrella Man to capitalize and sell the Ultimate Umbrella everywhere from local
convenience stores to international retailers and department stores to stands or
kiosks on the street. There is no limit to where this product can be sold in order to
see success and market growth.
Despite its many strengths as potentially the next big thing, there are
identifiable weaknesses associated with Umbrella Man’s Ultimate Umbrella. There is
an undefined consumer base associated with this product simply because it is a
revolutionary product and there is nothing like it out there. While the U2 targets
couples and families, it is undetermined at this time the overall amount of people
this can encompass. Until the Ultimate Umbrella reaches the market, it will not be
apparent as to how many individuals and what types of people will be interested in
purchasing the product.
There is also the potential problem with physically developing such a unique
product. The idea is relatively simple: an umbrella that can expand to allow for two
handles under a wide canopy. However, there will be a system of trial and error
with design. The optimum diameter of the canopy, the length and size of the
handles, the hinge mechanism and the collapsing capability of the umbrella will only
be discovered through trial and error in the product development stage.
External opportunities associated with the Ultimate Umbrella are numerous.
Umbrella Man is seeking to help a market that is currently unfulfilled: groups of
people that wish to share umbrellas without the several inconveniences associated
with squeezing under an average sized canopy. Though there are already several
different umbrellas of all shapes and sizes on the market today, there is still a void in
the market for those couples and families that would prefer to share one. In many
instances one umbrella becomes crowded and awkward for two people, or for
families with young children to all fit under. The Ultimate Umbrella provides a dual
handle, making it easy for parents to each hold one to keep the umbrella positioned
well over a stroller while keeping both of them dry, or for a couple to fit comfortably
underneath. By making it easier to fit more than one person under the canopy
Umbrella Man reaches an unfulfilled market, encouraging consumers to purchase
the Ultimate Umbrella.
As long as there is weather, there will be rain in most areas of the world. As a
result, there is a constant need for umbrellas by the general public. As wet weather
is something that cannot be controlled or always planned for, there will always be
room for growth in the market. Umbrella Man will be there to protect its consumers
from harsh conditions both individually or with their loved ones every step of the
way.
Threats mirror opportunities associated with a new product like Umbrella
Man’s Ultimate Umbrella because it is both a new company breaking into an existing
market and a brand new product. The umbrella industry is relatively specific with
only a few companies holding substantial places in the market. For example,
according to its website, the Stromberg Brand umbrella company has been in
existence since 1942. They offer a variety of umbrellas, including folding, golf,
fashion, and large patio umbrellas among others. It is a well-respected brand name
with a solid reputation and brand awareness, which may attract potential
customers. That being said, the Stromberg brand does not offer the dual two-person
umbrella at this time.
There is also somewhat of a lack in consumer demand for umbrellas. Despite
the fact that weather conditions are virtually unavoidable, not everyone will take
the initiative to purchase umbrellas. Some people think they are unnecessary and
would rather use ponchos, jackets with hoods, hats, etc, which may hinder overall
sales. It is important to make a contentious market effort in order to promote
Umbrella Man’s product and make all potential consumers realize that this is a
product that can’t be passed up due to its revolutionary convenience.
The possibility of other companies stealing the idea or design of the Ultimate
Umbrella is an additional threat. Because this is the first product of its kind and
because there are existing companies with substantial shares in the umbrella
market, it is extremely likely that the idea has the potential to be stolen. Ensuring
that there is a patent for the hinge mechanism that makes the U2 special is
important, because it will prevent companies from using the same design and will
force them to come up with another way to create a dual handled umbrella that does
not infringe on Umbrella Man’s original idea. Keeping the design a secret until the
product hits the market is vital, because it will force competitors to purchase the
product and examine it if they want to find a way to duplicate it, rather than them
seeing it before it is available to consumers and having the chance to figure out a
way to duplicate it sooner.
By engaging in the segmentation, targeting, and positioning process,
Umbrella Man can identify its opportunities and maximize them. This process (the
STP process) allows managers at Umbrella Man to identify specifically who to target
where, and what will be the most effective way of doing so. Umbrella Man will use a
differentiated segmentation strategy. A differentiated segmentation strategy is
necessary for this product because it has the ability to appeal to different targets.
Because the Umbrella Man has different target segments, it will market the product
differently to each segment. For example, because the Ultimate Umbrella comes in
three different sizes, it appeals to different segments in different areas and of
different demographics.
Umbrella Man will use geographic segmentation, because areas that see more
precipitation throughout the year will yield more success for Ultimate Umbrella
sales. According to Current Results, a website designed to bring research news and
science facts to the masses, New Orleans, Louisiana sees approximately 64.2 inches
of rain per year—this is an ideal market because rainfall is so heavy. In areas with
several rainy months throughout a year like Buffalo, New York, which sees 166 days
of precipitation, the Ultimate Umbrella will serve a wide amount of people (Osborn,
2004).
Umbrella Man will also be using a demographic segmentation approach
because there are different groups of people that are more likely to want or need the
Ultimate Umbrella. Couples in their twenties and thirties are a primary market
segment, as well as families with young children. Families with low to high incomes
can take advantage of this product since it is not expensive. Umbrella Man will in
large part market to families and couples because those are the segments that will
most likely find the Ultimate Umbrella appealing due to its dual-handled design and
wide canopy. Within these families and couples, Umbrella Man will market to the
women (young women in relationships and mothers). Women are more likely to see
an advertisement for Umbrella Man on television because they are more likely to
watch particular programs or channels that are family-oriented than men, who are
more likely to channel surf or watch sports/action programs. Since women tend to
think more in terms of their children and relationships than men do, they are more
likely to find this product appealing.
Benefit segmentation and geodemographic segmentation approaches are
also useful strategies for Umbrella Man marketers. Since benefit segmentation
markets to different segments based on the perceived benefits to each group of
consumers, it is a good strategic way to show the different groups of consumers how
the Ultimate Umbrella can benefit them. For example, marketers can portray the
Ultimate Umbrella as comfortable to young couples out on dates or trips because it
allows them to remain close to one another while still not squeezing together to stay
dry. When marketing to mothers and families, an advertisement can display two
parents each holding a handle of the umbrella while keeping their young children
under control and under the safety of the U2. The geodemographic segmentation
approach will allow Umbrella Man to group consumers based on the similarities of
their lifestyles in a given geographic area. This will allow Umbrella Man to tailor
how its product is displayed and what options are available for its product
depending on the area. For example, if the area consists of mostly young and middle
aged couples with no children, Umbrella Man may choose to offer fewer canopy size
options but more vibrant color options, because only one to two people would be
using the Ultimate Umbrella at a given time. In suburban areas with more families,
there will be more sizes available.
Each of the segments in this market is attractive. First, the segments are
identifiable. Umbrella Man seeks to target couples and families, because both will
benefit from the presence of a dual-handled large umbrella. Each of these target
segments is identifiable and distinct, because each will respond to different
marketing efforts. Both segments are substantial, particularly in urban and
surrounding suburban areas, where couples and families tend to cluster,
respectively. The buying power of both groups is significant because they take up a
large portion of the market for necessary commodities, and have the power to
generate revenue for the Ultimate Umbrella—they are the ones that will find it most
useful and will make it popular. Both couples and families are reachable in that
between them they watch television, read magazines, and shop, exposing them to
advertisements for the Ultimate Umbrella. Advertisements and the product itself
will appear in places that these groups shop, such as grocery and convenience stores
and retailers. These groups are responsive to this type of product because it is a
necessity that has been made convenient at a reasonable price. Couples and families
are profitable segments, because they have the income and stability to afford the
product, as well as the need to push them to buy it.
To begin its marketing efforts, Umbrella Man will initially target couples and
families in the Buffalo, New York and New Orleans, Louisiana areas. This will
combine marketing efforts for those who may be interested in the dual-handled
umbrella (a higher urban and satellite suburban population suggests couples and
families are prevalent), and those who most often experience wet weather. Keeping
the product to urban and suburban areas is vital, because families and couples tend
to live in metropolitan areas for work and educational reasons. Many of these
metropolitans are the areas that experience high precipitation, creating an ideal
target market for Umbrella Man.
Umbrella Man is a good-providing company, directed towards couples and
families in areas that frequently experience precipitation. It is a functional, practical
company that ventures into the realm of convenience paired with necessity.
Umbrella Man will use a positioning method focused on the salient attributes of the
Ultimate Umbrella because the unique characteristics of the product will be what
ultimately make or break the sales. Playing up the dual-handle for people in
relationships or families with children emphasizes the characteristic of the product
most important to the target segments: the ability to comfortably and effectively
share space under an umbrella.
In order for the Umbrella Man Ultimate Umbrella to be a success, it is
important to evaluate and demonstrate proper usage of the marketing mix and the 4
P’s. As stated, the product at hand here is the Umbrella Man Ultimate Umbrella. The
product will have various features to attract any and all customers. It will be dual
handled and span from 5 to 6 feet in diameter, depending on customization and
consumer interest. This will allow customers to retain the ability to choose the size
in which they prefer. For example, mothers with two or more children will opt for
the wider, 6-foot diameter, while close couples may be satisfied with the 5-foot
diameter. The Umbrella Man Ultimate Umbrella seeks to satisfy.
Along with the varied diameters, the U2 will be available at various costs.
Starting at $14.99 and ranging up to $24.99, the larger the diameter, the greater the
price. The Umbrella Man Ultimate Umbrella uses a cost-based pricing strategy,
where material costs are considered and then a fixed cost is added on to determine
the selling price. We believe that this is a fair and reasonable cost to charge our
customers while maintaining a profit.
The U2 is a convenience item and can be sold virtually anywhere. We project
that the item can be sold in convenience stores, on the street, in major retailers,
grocery stores, and online at the company website. Umbrellas are versatile and do
not need specific locations to be sold effectively. We want to ensure that all
potential customers can be reached and plan on selling the product at any and all
locations possible.
Finally, to promote the Umbrella Man Ultimate Umbrella, Umbrella Man
plans to use various means. We plan to use television commercials, magazine
advertisements, catalogs, and online advertisements. We believe it is important to
cover all bases and reach as many individuals as possible. Our advertisements will
include families and couples using the umbrella and demonstrating how convenient,
durable, and expansive it really is. Our advertisements will show how much our
customers can and will enjoy the product.
After all of this has been completed, it will be time to evaluate the product
using various metrics. To begin, we deem that Umbrella Man as a company is a
“Question Mark” because it has a low market share, in a high market growth rate.
We believe this to be true because it will be a new product starting out in an
industry that is not necessarily extravagant. That being said, it has the potential to
product a high market growth rate once the word gets out about our product.
Umbrella Man has a sustainable competitive advantage due to the fact that there is
not another product like this currently on the market. This will be completed
through a diversification strategy. A new product is being introduced to a market
that is currently not being served. If funded properly through “Cash Cows”, the
Umbrella Man Company will grow from a “Question Mark” to a market “Star,” as it
will have the money to boost the marketing mix and gain a higher market share at a
high growth rate. The diversification strategy is the most risky as is a completely
new product being introduced and there is no guarantee for success. That being
said, Umbrella Man is confident that its Ultimate Umbrella is a worthy product.
Performance objectives and metrics can be used to compare Umbrella Man to
other major umbrella firms such as Stromberg, a major manufacturer of umbrellas.
Stromberg has every kind of umbrella there is except a dual handled one, so it can
be assumed that once Umbrella Man introduces the Ultimate Umbrella into the
market that Stromberg will develop something similar. We can compare our market
growth rate and market share to that brand in order to determine the success or
failure of the company. Performance objectives can be used to set short-term and
long-term goals for our company and those goals will have deadlines. At each
deadline, the company will be able to assess how it is faring based on its projections.
Financial metrics can be used to analyze the financial success of the company
through comparing yearly sales, revenues and profits. Further, the company can
measure both the absolute and relative sales and profits against other companies.
Because we anticipate competitors coming into play after the introduction of this
product, we will have other companies to compare to for this specific product over
time.
The development of a marketing plan is crucial to the success of any product
in the market. Now that we have a set plan for success, Umbrella Man can ultimately
begin the process of introducing the Ultimate Umbrella and serve you and your
loved ones with all of your precipitation protection needs.
References
United States' Rainiest Cities - Current Results. (n.d.). Current Results - Home. Retrieved
December 4, 2011, from http://www.currentresults.com/WeatherExtremes/US/wettest-cities.php