Marketing Plan - Montana State University Billings

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Marketing Plan
Fresh Alert
Product: air freshener inside of a fire
alarm
Market Targets

for fire alarms
for carbon monoxide detectors
for security systems
for air fresheners

Contractors and End Users
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Growth Targets
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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
Carbon
monoxide
alarms
Home alarm
systems
Each target
by system
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

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
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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





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Classic Design Homes
Cougar Construction
Dan Fluery Construction
Dan Lowe Construction
Kw Signature Homes
McDadden Construction
Skyline Builders Montana
Wells Built Homes
Segment Strategy

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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



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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


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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


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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
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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


Attributes


Two in one system provides convenience, safety and comfort
within a reasonable price
Consequences



Smoke detector/air freshener
Physical- safety device, refreshining odor
Psychological- comfort of working safety device,
convenience in two of two in one device
Value

Reasonable price, convenience, safety
Perceptual Map
Luxury Priced
General
*ReNuzit
Specialty
*Fresh Alert
*Oust
*Vapor Plug
*Glade
Economically Priced
Promotion Objectives-Inform

Attention

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Information
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Strategy- Convenience, word of mouth, sponsorship if
demonstrations
Desire

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Strategy- Newspaper advertising, internet advertising, yellow
page advertising, home magazine advertising
Strategy- Coupons, rebates, warranties
Action

Strategy- Inform customer of additional products, Inform
customer of changes in product
Place Objectives
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How to manage channel relationships
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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
Customer Service level desired
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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
Place Objectives-Medium Care

Channel Systems
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Degrees of market exposure desired

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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
Types of middlemen needed

Retail store, building contractors, home cleaning
services
Price Objectives-Sales
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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
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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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