Marketing and Product Essay
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Company G, a company with a terrific history, produces high quality small appliances. Company G’s reputation speaks for itself, having earned the title of one of the most Reputable companies today. N Company G is continuing this by introducing our new appliance called G camera X.
“We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.”
As stated earlier, Company G’s products enable consumers to improve the quality and convenience of their lives by providing innovative electric solutions.
Company G has introduced a new concept geared towards enhancing consumer’s enjoyment of using digital cameras. Company G’s new concept add ease and reliability to the everyday use of product.
Company G’s new digital camera, called G Camera X will feature awesome new additions which will include a hip new mold design and material, which will enhance the appearance and also the handling of product. The new mold design will leave the camera virtually break proof and water proof, which in term improves quality.
The new concept of solar power will be introduced in this product also. No longer will there be a need for batteries, which will enhance the convenience of this item.
Consumer Product Classification
The image of the product is very important. Our product must convey quality and convenience the consumer desire. Convincing the customer to buy is a must; therefore, we will be promoting the device heavily. Pricing will be above average because of the advanced quality of item. This product will not be purchased by the consumer on a daily basis; therefore, the customer will put thought into the purchase of this item .This product will be available at the majority of major retailers, which include Wal-Mart, Targets, and Best Buy, also the camera will can be purchased directly through the company’s website. Many things were factored when deciding how to classify this product.
After careful consideration, G camera X consumer classification will be shopping.
1.People with income level above 30,000. Income level will help identify people with the financial ability to purchase this item, since it is on the higher end of price range. 2. Geared toward any education level. Camera is relatively simple to use, therefore majority of the population will be able to use. 3. Geared toward family oriented individuals. People with children will be delighted in this product because parents enjoy taking pictures of kids and would like the advantage of having a break proof, waterproof, solar powered camera
Competitive Situation Analysis
Analysis of Competition using Porter’s 5 Forces Model
The task instruction is: Analyze Company G’s competitive environment utilizing Porter’s Five Forces Model of competitive forces. While headings below may provide some guidance for how to organize the paper, please refer to the recommended text (index topic: “Porter’s 5 forces model”), the learning community, and recommended web sites. As you will see from the reading, Porter’s 5-forces is a way to examine threats to a company’s success – which was competition imposes.
Competitive Rivalry: The competitive environment may be fierce. Several threats exist. Company G is a well-established and respected company. Although this is a factor, rival companies eager to capitalize exist. Companies will make product closely resembling Company G’s and may offer at a lower price or with more incentives. Market growth will not be slow and low fixed cost to produce item will decrease rivalry. Since customers somewhat easily and freely switch from one product to another, this will increase rivalry. There are quite a few rivals in the same market.
Threat from New Entrants : Threats to company G success are possible. New companies may enter the market, looking to take advantage of producing a product to challenge Company G’s product. They may have access to lower cost distribution, which in term may offer their product at a lower cost. Startup is not that expensive, which may encourage new entrants.
Threat from Buyers : There could be a possible threat to Company G’s success from the buyers, depending on how they react to the new product. Buyers may not embrace the technology . some may not feel comfortable with the new product or the pricing of item. Buyer volume may at times be slow. Also, consumers may be a little hesitant with purchase because this product is a little pricier than the substitute product that may become available.
The threat is not that significant because consumers are always looking for new and innovative products on the market. People desiring new product, will out way people hesitant to buy.
Threat from Suppliers: threats from suppliers does exist. Suppliers may increase the price of raw material to get some extra profit. Suppliers who produce parts that are not easily gotten from other suppliers will be the ones to take advantage of this. These companies, having the knowledge that Company G will have issues finding another supplier to produce the same part will raise there price for these goods. This risk is not that significant, since most of the parts used to produce product are easily manufactured by suppliers which will help eliminate this risk.
Threat from Substitutes : there is a significant threat of companies producing substitute product. Companies will try to compete by producing items similar to Company G’s. This threat is very significant due to the fact that many companies want to make a profit out of new ideas and technologies. Companies may also offer substitutes at a cheaper price.