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Business G has developed a house device business in the US for 7 years. Core company activities include offering dishwashers, fridges, cleaning machines, and clothes dryers, and so on.
Company G's long term objective is enabling customers to enhance the quality and convenience of their lives by supplying ingenious electronic services.
Are you too tired to prepare a meal after work? Have quick foods become your eating routine? Do you wish to consume healthy, but lack the time? Do you dislike the trouble of cleaning after cooking? Now we will present our innovative brand-new product called 8-1 Versatile Cooking Pro.
This new product is combines the functions of grilling, roasting, boiling, air frying, steaming, stewing, baking, and stir frying (it includes 2 blades) into one cooking system. It is leading the front end of technology. The 8-1 cooking system changes all of those typical little appliances in our family, such as indoor grill, standard oven, steamer, dehydrator, toaster oven, rotisserie, and microwave.
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The 8-1 Versatile Cooking Pro embraces microcomputer simulating control technology. It can accurately imitates the expert chef's cooking skills, immediately adjust the power level of the different stages of cooking, and can automatically control the cooking time which can show authentic cooking.
It has a preset time function. You have the flexibility to delay the cooking procedure up to 15 hours in advance. It also has a keep cool function; it keeps the meat cool till it reaches the pre-programmed cooking time. Setting it up in the morning and your food will be ready when you get home.
What could be much easier? The appealing, compact style fits on your cooking area counter or supper table for hassle-free service. The bottom liner pan collects fats and oils, making your food tastier and healthier for you. The detachable tray helps to make clean up quick and simple. It takes less than 2 minutes to tidy up. Business G is making every effort to make life much easier and more enjoyable by incorporating 8-1 Cooking Pro into customers' busy lifestyle. Customers can take pleasure in cooking with fewer tasks. 8-1 Cooking Pro is an excellent way to conserve time, cash, and area along with consume much healthier.
Consumer Product Classification
8-1 Cooking Pro falls into the classification of shopping product according to the three-way classification system. Price is an important factor in many consumers’ decision-making process. Cooking Pro’s selling price is more than 100 dollars due to its multifunction features. Consumers will consider its price and quality before purchasing. Most of households already have small appliances such as microwave, oven, grill. It normally takes longer period to consider buying a new one for consumers. Cooking Pro will be purchased on a less frequent basis compared to convenience products. Consumers are willing to spend considerable time and effort gathering relevant information. Consumers like to research product review online and compare it with other products before making a decision to buy. Cooking Pro may not be found in any grocery store. It will be sold in certain outlets and online only. Considering factors of price, convenience of the product location, planning time, and purchase frequency, Cooking Pro is a shopping product.
Target Market
The target market for Company G products is people age 35 through 50 who loves to cook, bake, and grill food. These consumers represent a demographic group of full time working people who will prepare meals for family frequently. They are married or raising family and have an annual household income $40000-$80000. Competitive Situation Analysis
Analysis of Competition using Porter’s 5 Forces Model
By conducting this analysis, we will better understand the competitive forces that could significantly impact the success of product. We will be able to create more accurate planning strategies by analyzing these threats. Competitive Rivalry
8-1 Cooking Pro is the first multiple functions cookware on the market. Company G has quite of bit of power in the current small appliance market because of its competitive, advanced features. It has a low competitive rivalry at the beginning; however, the introduction of our product into the market will likely cause other firms to intensify their market strategies. Competitive rivalry becomes higher when other competitors enter into the market.
Threat from New Entrants
Small appliances market has big potential buyers; therefore, attracting many manufacturers of small appliances to enter into the market to gain profit. There are very low barriers to enter into the market for those companies, such as Cuisinart, Black & Decker, Hamilton Beach, and Kitchen Aid. Internet searches enable those companies to compare their products with ours. They can learn about the advantages of our product. They may change their product strategies plan, and implement innovation improvements of their products. If the companies are larger than Company G, they may produce similar products at a lower price than Company G when they enter into the market. That will lead to higher rivalry.
Threat from Buyers
Since small appliances are affordable for every household, market demand is larger than supply. Buyers’ power is very weak and can’t affect product price; however, the lowest price is likely to attract more buyers. Now buyers can search product reviews and compare products online. Our Cooking pro has more features with a lower price than others. The threat from buyers is very minimal.
Threat from Suppliers
8-1 Cooking Pro is a new product. Company G needs to find new suppliers. Cooking Pro‘s unique features require special parts that fewer suppliers can provide in the local suppliers market. It causes suppliers to negotiate higher prices with Company G. That will impact overall product price. Searching suppliers online enables Company G to find suppliers much earlier. Company G can extend its searching to find suppliers online who can provide high quality parts with lower prices. Company G may consider suppliers in Asia since Asian suppliers always offer competitive price. Company G has a big potential buyer market. It will leads to high profits in coming years. Suppliers are willing to offer competitive prices to become permanent suppliers of Company G, so threats of suppliers are very limited.
Threat from Substitutes
There are many similar products with fewer features in the market. Internet shopping enables buyers to compare product features, price, or read other buyer’s review. Shoppers prefer to purchase a product with more features and benefits. 8-1 Cooking Pro can replace most kitchen appliances, so threats from substitutes are minimal.
By conducting a SWOT analysis, we can identify the strengths and weaknesses that will impact our marketing strategy, as well as the major opportunities and threats currently or potentially relevant in our industry. Strengths and weaknesses are internal factors that we can control. Opportunities and threats are external factors that we can’t control. Through this analysis, we have a better understanding of the overall strategic position of our business and its environment.
STRENGTHS
Strength 1* having a good reputation in small appliance industry. Strength 2 *having a good relationship network with suppliers Strength 3 having a low debt-to -equity ratio and a high credit rating
WEAKNESSES
Weakness 1Staffs have insufficient product knowledge
Weakness 2 Lack of bilingual staffs
Weakness 3Defective products at the beginning of sales
OPPORTUNITIES
Opportunity 1 Extending market to worldwide
Opportunity 2 Become supplier of Wal-Mart, Target
Opportunity 3 Establish business relations with world renowned retail store
THREATS
Threat 1 New competitors enter into market
Threat 2 Labor cost increase
Threat 3 Economic turndown
Strengths
Company G has a good reputation, good relationships with suppliers and low debt-to-equity ratio and a high credit are strengths of Company G. 1. Company G has established a home appliance business in the US for 7 years. Company G has a good reputation in the small appliance industry by producing high quality, durable products. Consumers are very satisfied with company's products that enabling current consumers to continue to purchase our new products as well as encourage potential consumers to buy our new products. This is one of the core competencies of Company G. 2. Having a good relationship network with current suppliers.
Large-scale procurement and long term cooperation with current suppliers can enable suppliers reduce the cost of transportation of raw materials. Product costs are always lower, and Company G can sell their products at lower price than other competitors. This is other core competencies of Company G. 3. Company G has a low debt-to-equity ratio, high credit rating and strong financial strength encourage more investors to invest in Company G. Increasing equity allows Company G to develop more product line in the future.
Weaknesses
Staffs having insufficient product knowledge, no bilingual skill and defective products at the beginning are weaknesses that may lose potential customers.
Opportunities
To increase potential customers through expanding our target to the international market, become supplier of domestic online retail store and establish business relations with world renowned retail stores.
Threats
Market Objective
Company G will be able to better define the marketing strategies by clearly identifying a marketing objective for each element of the market mix (product, price, place, promotion) and being able to monitor those strategies effectively.
Product Objective
Launching 8-1 Cooking Pro to the market by April-2014, introduce its features and benefits to consumers, and sell at least 45000 sets in every quarter.
Price Objective
increase net income by 4% with 18 months.
Place Objective
Establishing at least 100 new outlets and sell Cooking Pro online within 1 year. Increasing revenue by 10% within 2 years. Promotion Objective
Increase product awareness among target market by 10% in 1 year.
Marketing Strategies
A marketing strategy includes marketing topics like product development, pricing approach, place and promotion. Clearly identify each strategies to show how business firm achieves its goals.
Produce Strategies
Offer 10 years product warranty.
Offer in compact size.
Adding a logo called “Your Private Chef” on the product. Price Strategies
Accept Visa, Master Card, And American Express.
Special offer buy one get one 50% off.
Interest free for 5 installment payments.
Place Strategies
Direct sell Cooking Pro in Amazon.com.
Open outlets in malls in every state.
Select shipping carrier which offers lowest shipping rate.
Promotion Strategies
Demonstrate 8-1 Cooking Pro in Walmart, offer free foods cooked by Cooking Pro to shoppers. Advertise Cooking Pro on Facebook.com and Youtube.com.
Advertise Cooking Pro in Fine Cooking magazine.
Target market for Company G is people age 35 through 50. These consumers represent a demographic group of full time working people who will prepare meals for family frequently. Cooking Pro can accurately simulate the professional chefs’ cooking skills. Adding logo ‘‘Your Private Chef’’’ on the product, sending message to consumers that they can enjoy restaurant quality foods without paying restaurant’s price. 10 years warranty will increase consumers’ confidence in the quality of our products. Compact size design saves a lot of space. Those features and benefits attract consumers to purchase Cooking Pro. It definitely helps Company G to achieve product objective. Cooking Pro’s selling price is more than 100 dollars. Company G accepts all kinds of credit card payment, offer buy one get one 50% off, and Interest free for 5 installment payments method.
Consumers can afford to buy. It leads to increase revenues, so Company G can achieves price objective. Amazon is the world's largest online retailer. There are a plenty of shoppers shop at Amazon.com. Selling cost at Amazon is low. This strategy can increase net income. Everyday thousands of people go to mall. Selling Cooking Pro in the mall definitely increase sale. Shipping cost is one of the consideration factors for consumers, list low shipping price always attracts more consumers to buy it. Those 3 strategies helps increasing sale, so Company G can achieve place objects. Our target market is people who love to cook, those people always looking for receipts in Cooking magazine and shop at grocery ; therefore, advising Cooking Pro in Fine Cooking Magazine and demonstrate it in Walmart can increase awareness amount our target market. Facebook and YouTube are very popular, advising Cooking Pro on social networking helps to increase awareness.
Tactics and Action
A tactic is a conceptual action implemented as one or more specific tasks. Tactical and action are steps necessary to get results. Product Action Plan
Tactic
Due Date
Responsible Party
drawing logo design
Oct-31-2013
Product development Dept.
Clearly describe what services, parts, accessories, and labors will be covered under the warranty.
Oct-31-2013
Production Dept.
Completing compact size mold design
Dec-31-2013
Product development Dept.
Price Action Plan
Tactic
Due Date
Responsible Party
Set up payment application for debit card and credit card Dec-31-2013
IT Dept.
Develop and activate promotion code for buy one get one 50% off Nov-31-2013
IT Dept.
Set up payment installment application
Nov-31-2013
IT Dept.
Place Action Plan
Tactic
Due Date
Responsible Party
Open a seller account at Aamzon.com
March-31-2014
Marketing Dept.
Contact leasing office in mall in every state to open outlets Feb-28-2014
Marketing Dept.
Compare shipping rate among carriers. Open business account with shipping carrier which offers lowest shipping rate. Feb-31-2013
Marketing Dept.
Promotion Action Plan
Tactic
Due Date
Responsible Party
Contact Walmart management to set up date, and reserve space to demonstrate product
Feb-28-2014
Sale Dept.
Open a new account on Facebook and Youtube, and upload introduction video on both websites. March-31-2014
Marketing Dept.
Send advertisement to Fine Cooking magazine
March-31-2014
Marketing Dept.
Monitoring Procedures
Important part of strategy implementation is monitoring – taking a periodic look at "how it's going." We will use one monitoring procedure for each of the four marketing areas discussed above. To measure the success of our product strategies, we will measure the monthly production report over next 10 months. To measure the effectiveness of our price strategies, we will monitor our produce cost analyze the revenue report . The effectiveness of our place strategies will be measured by comparing sales at each location to identify the most effective place of the product. Lastly , we will measure the effectiveness of our promotion strategies by analysis monthly sale report.
Monitoring Activity
Due Date/Frequency
Responsible Party
Monthly production report
10 months from launching /monthly
Production Dept.
Revenue ,product cost analysis
October-2013 through Dec-2014 / quarterly
Finance Dept.
Comparison of distributor sales
July-2014 through Dec-2015/quarterly
Sale Dept.
Monthly Sale report
12 months from launching/monthly
Marketing Dept.
Business G Developed By A House Device Business. (2016, Mar 19). Retrieved from https://studymoose.com/business-g-developed-by-a-house-device-business-essay
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