As a group of six, we have been researching on visible products that we could launch in the market. Our main concern is that our product has to be highly differentiated from existing products both in price and in design. Our market analysis reveals that demand for kitchen appliances is high and it was agreed that this was the best market to penetrate. The products that we are considering developing include microwaves, cookers, blenders, coolers and toasters. A toaster was a logical choice because they are new to the market and many households are demanding for them. After comprehensive research and analysis, the group decided to develop and market a transparent toaster. Transparent toasters will gain a market niche in the next year due to their elegant design. The idea of seeing the bread toast is a phenomenon that could be marketed easily due to its appealing nature. In the group, I was given the role of a market analyst. In my position, I was expected to lead the market research on viability of the launch. I was to supervise personally the field trials on the product and report to the group on the developments.
Market research included a visibility study on whether the transparent toaster was a profitable venture. We contemplated several methods of carrying out the research including, Surveys, Focus groups, interviews, observation and actual field trials. Our main concern was cost and time. Our budget for the market research was to be as low as possible. Another aspect put in consideration was time. We needed a method that could give feedback soonest possible to prevent chances of irrelevancy. Since we are six in the group, we decided to settle for a method that would require only six people to implement. A survey that would involve sampling was rejected due to its cost and it was agreed to use field trials as a method of research. We place the transparent toasters in selected stores where we can monitor their demand. The trials will help in projecting the long run demand for the toasters and their profitability. This method would also allow for interviews and actual observation of market trends.
Pricing of the transparent toasters was the next issue of consideration. The price of transparent toasters can range from US $70 to US $ 90. We decided to price at US $ 75 because it was the most cost effective. A 10% discount was to be allowed for every third purchase. The Transparent Toaster was to be vertically slim in design. This was to give users a better view of the toasting bread to minimize chances of burning. We branded our toaster as the “itoaster” a name we believed to catch on fast due to the craze with anything “I”, iphone, ipad and others. We decided to design billboard adverts and fly outs to be distributed to the public. We also selected six stores where each of the group members would be stationed as sales representatives. We were to advice customers on the features of the transparent toaster. Each member was given a target of personally selling twenty toasters a week. We also created a website for our business. All modifications on the product are posted there and online orders could be placed.
Our main target market was the domestic market but plans were put in place to enable online orders and their delivery. We are to rent a warehouse to act as the main distribution base and we agreed to hire qualified storekeepers to run the warehouse. Market discrimination was agreed on and prices were to vary according to the cost of delivery from the warehouse. Using our contributed capital, we are to purchase a van that will be used for transporting the toasters to stores in different regions. Efficiency was a concern we addressed by ensuring a real time tracking system of the Transparent toasters. Since they are made of glass, care is to be taken in their handling. The van is to be fitted with state of the art cushioning to prevent cases of breakage. Another issue addressed was customer service. Home delivery is not a viable venture due to the cost of transport but after-sale service is to be maintained. Customers are to be given warranties for six months during which any malfunctioning would be addressed by the group. We will hire an expert to be stationed at the warehouse who will deal with repairs. Due to the rapid growth in technology, we decided to be reviewing the toasters every two months with a keen interest on market trends been observed (Hisrich, Robert, 2000). Currently we are in the process of developing a market research on touch screen toasters. To avoid obsolete stock, stock level was agreed at one thousand units at all times, time of delivery from the manufacturer being taken into consideration.
In conclusion, the group expects the marketing plan to be successful given the product is new to the market and the system out in place to ensure its success is very strong. The launch is very viable and should be implemented immediately before new market entrants crowd the market. Given our proposed price, we hope to gain a large market share and with time, market locking will be possible. The after sale customer service will be an added advantage to our side. The group is confident that we will be market leaders in this venture. Diversity is our motto.
Hisrich, Robert. Marketing. 2nd ed. Hauppauge, NY: Barron’s Educational Series, 2000.