Comfy humidifiers this product marketing essay

We are going to introduce a new product in the market with the name ” Comfy Humidifiers”. This product is meant to reduce humidity from the air. Dehumidifiers operate by producing an overabundance of water which has been uprooted from the conditioned air. The dehumidifier industry in USA is not much saturated and there is a great scope for our company to foster in this division. A dehumidifier is for the most part a family apparatus which lessens the level of humidity. Reducing the humidity is crucial for health explanations. Extremely damp atmospheres or air make some individuals greatly uncomfortable, bringing on unreasonable. Humidity is moreover favored for the most irritations, incorporating apparel moths, insects, cockroaches, woodlice and dust parasites. There is great competition in this sector and our organization has survived this competition with great flair. We enjoy good reputation in the market for our refrigerative appliances. The sector of dehumidifiers possesses a lot of potential and we can capitalize on this fact.

Company Analysis:

Our company is already manufacturing the Refrigeration appliances. Our association is looking to venture into new advertises to influence current victory, get a charge out of economies of scale, develop incomes and items, and lessen on the whole danger and make a progressively stable plan of action. (Grow your business )Our Organization’s essential objective is to make greater worth for our shareholders, clients, representatives and friends, and for public order by and large. We strive to be a driving compel in making, streamlining and acquainting substance results with the commercial center. To add new products to its line in each third year for expanding the deals volumeTo set an image as the best quality of refrigeration appliances and dehumidifiers. To set a picture as the best quality of products providerCorporate Governance: Our Organization considers great corporate governance to be a key apparatus for attaining our vision, quality creation and key objectives, consenting to our qualities and for upholding great corporate society. Besides, great corporate influence is basic for trustworthiness and for access to capital.

Capital structure:

The evaluations reflect the association’s enhanced income base that guarantees security in wages, in spite of a remarkably aggressive nature. While arranging its items and methods to modifying business flow, the administration has been efficacious in withstanding the aggressive forces through nonstop drives at feature up degree and improvement, cost streamlining, and attention on feature value. The capital structure of the association, through proportionally remarkably leveraged at present, is wanted to enhance with increase in the value base through expanding slant in productivity and arranged issue of inclination imparts in the close destiny.

Objectives:

To increase sales volume. To expand product line in the overall industryTo guarantee productivity on the foundation ofImproved model mixLaunching new itemsIncreasing consciousness, image and positioning of brand

Industry analysis:

Different Companies are dealing with providing quality humidifiers but the industry is still not saturated and there is a lot of untapped market that can be targeted by new entrants. Our company can take advantage of this opportunity and expand its product line. (Dehumidifier coroporation of America)In this phase a cost benefit analysis will be done: Total Cost going to be incurred including Capital Cost, Capital Cost and Opportunity will be calculated. Is there an untapped market for dehumidifiers? Is it appropriate for funding? Is it going to earn revenue? What incentives will it provide to the organizations? This process may well result in the initiative not proceeding or perhaps going ahead on a different basis. After this the plan will be confirmed, incorporating exhibition focuses on that will help staff and board evaluate the victory or washout of the new drive.

Competitors Analysis:

Our competitors include GE, Haier, Samsung, W. C. Wood, Santa Fe Compact, Whirlpool, Kenmore, Frigidaire

Haier:

Haier is based in Manhattan. Haier America is a division of the multinational Haier Group. It is one of the direct competitors of our organization. Haier utilizes more than 80, 000 individuals around the globe and distributes items in more than 100 nations and districts with worldwide incomes arriving at $23. 3 billion in 2011. (Haier)

WC woods:

WC woods was a leading brand of freezers and dehumidifiers but recently it Declared Bankruptcy. This is an opportunity that our organization can explore and can become one of the leading brand for providing dehumidifiers (WC woods declares bankruptcy)

Whirlpool:

Whirl pool is another leading supplier of dehumidifiers and our direct competitor. Their appliances are marketed nearly in all the countries of the world. (Whirlpool)

Action Plan

Table

Action Steps

What Will Be Done?

Responsibilities

Who Will Do It?

Timeline

By When? (Month)

Resources

Resources Needed (financial, human, political & other)

Potential Barriers

What individuals or organizations might resist?

Step 1: Market Research

The market research will be done by the research analystMay 2013Research Analysts are already available in the organizationBudget for the researchCompetitorsThey might cause problems in the way of our research

Step 2: Concept Development

One best concept from the whole insight and research will be selected for execution by board of directors and top managementJuly 2013Staff and board of directorsSome cost will also be incurredThe risk averse staff and board of directors

Step 3: Product Development

Project ManagerProduct ManagerAssociate Product ManagerEngineeringstaffLaborNovember 2013MachineryPlantLabor etcBudget might be a constraintGovernment regulations

Step 4: Advertising

Marketing ManagerNovember 2013Advertising CostMarketing Team

Step 5:

Introduction to Market

Channel ManagerSales ManagerJanuary2014Sales TeamBudgetCompetitors might cause some hindrance(Bright Hub PM)ActivityDescriptionDuration(in months)Precesding activityAVendor selection2

–

BRequirement analysis3

–

CDesign4A, BDConstruction3CEData collection/conversion2DFTesting1DGHardware acquisition1FHOther software acquisition1E, FISoftware installation0. 5HJHardware Installation0. 5GKImplementation6I, JLTraining3KMConduct parallel runs3KNFix bugs1M

Activity List for MIS project implementation for our Dehumidifier

Table

Strategic Focus and plan

Core Values

A commitment to provide our customers with superior quality productCustomers’ health and safety is always our priority

Mission statement

” Our mission is to deliver products, information and resources to every American citizen to empower him towards optimal health and wellbeing”.

Non-Financial Objectives

To ensure that our customers get the products that are beneficent for their healthTo position our product as the best possible solution with no side effects forTo market our product in entire USA before January 2014.

Financial Objective

To reach the break-even point in the first operating year including R&D and marketing costs. To achieve the revenue target of $99, 000, 000 and operating profit of $64, 000, 000 by the end of second operating year. To invest the potential profits in such financing activities that would earn good reputation and maximum financial benefits for the company. To finance future expansion using internally generated funds and external financing resources.

Competencies & Competitive advantage

Few direct competitor in the market. No side effects of the product. It will cater the needs of a wide-targeted market above the age of 18ISO certified transpiring its premium quality and safe manufacturing process. The company is already manufacturing refrigeration appliances and occupies certain market share thus it would help the product in public relation development. The company can export its product to under developed countries where dehumidifiers are not being manufactured.

SWOT Analysis

Table

Internal Factors

Strengths

Weaknesses

Management

Diverse managementNew staff required for this new division may lack experience

Offering

High quality dehumidifiers will be launched with three different models each catering different energy needsUncertainty of customer’s response

Marketing

Good public relation and effective marketing programsHigh cost in the initial years dueto aggressive marketingR&DProfessional and qualified R&D teamPotential risk of loss due to High R&D cost

Manufacturing

– Get ISO certification and provide high quality product through an automated manufacturing processManufacturing process can be copied by competitors

Human Resource

A comprehensive recruitment procedure to attract and retain quality employees. Specially designed training programs for R&D and manufacturing procedures. High recruitment and training costs due to technical nature of product

External Factors

OpportunitiesThreats

Psychological

People in USA are quite conscious about their health

Technological

R & D developments to increase the product line. E-commerce and Twitter will help social Media MarketingTo maintain the technological advantages is costly

Competitive

Higher barriers to entry for new entrantsGreat Success may bring future competitors.

Market-Product Focus and Goal Setting

The marketing objectives for Company, the target markets, points of difference, and company positioning are

One-Year Marketing Objectives

To create awareness of the ProductTo position the product as a very consumer-friendly productTo stimulate trial and repeated purchases by 45 percent of consumers in target market segments. To become recognized by American Dehumidifier Association for its useful functions and wonderful results for the society. To be the most recommended product

Five-Year Marketing Objectives

To become well-known in America and in the countries where the product is exportedTo acquire the status of a market leader by continuous improvement and innovation in the product

MARKETING

There is no point in starting a business unless the entrepreneur has identified a lucrative opportunity. Therefore, before making a marketing plan a detailed analysis of the local market was done and on the basis of the positive results, we went ahead with the plan. Market Research: The market research is conducted by gaining insights about the target market and target demand.

Market Size:

The dehumidifier industry in USA is worth approximately $100 Billion including Sales of dehumidifiers and aftermarket services. Out of this market share, 60-70% is believed to be constituted from sales of dehumidifiers and 30-40% from aftermarket services.

Target Market

Target market is established before analyzing market demand. Target market will be, Business MarketConsumer Market

Market Demand

Dehumidifier is already being used in the United states of America. Different companies are dealing in providing dehumidifiers. Our company will introduce a totally innovative product with 3 different models providing different features. The business model has a scope of gaining insight into the business industry, and has been fortunate recipient of a great ground-breaking work.

Result Findings

Thus research symbolizes a great amount of demand and predicts the insight of the profitable business in establishing such business

Marketing Plan

The marketing plan is developed with correspondence of marketing principles.

Marketing 4P’s

The marketing four P’s are as follows, PriceProductPromotionPlacement

Price

We are going to be following target costing. By setting the initial price of our product, we will devise strategies to meet the costs through different strategies. TableStep 1Identify pricing constraints and objectivesAs mentioned above, due to the high demand unique Features our price should be slightly high. Type of Competitive Markets: Pure monopolyOur pricing objectives are maximizing Profit and expanding our product line. So we will set following kinds of price for our product : ” Target Costing” Step 2Estimate demandand revenueComfy Dehumidifiers can be considered as necessity with inelastic demand. Step 3Estimate cost, volume, and profit relationshipsOur cost of dehumidifiers varies with their models. Based on the Break-Even Analysis, we can make profit after selling out 211, 625, 0 dehumidifiers. Step 4Select an appropriate price levelWe will adopt Target CostingStep 5Set list or quoted priceWe will use flexible pricing strategy which will not only suit our multiple channel distribution strategy but will also help us to increase the product preference for our wholesalers and retailersStep 6Make special adjustment to list or quoted priceSince we have 3 kinds of packages ranging from 5-candy pack to 20-candy pack, we will offer quantity discounts to the retailers . We will also provide promotional allowances to deepeners and retail grocery stores for advertising our product

Products

The products offered are

Comfy 60P dehumidifier:

This dehumidifier has a capacity of 60 pints. This means that it can remove the moisture equivalent to 60 pints or 30 liters per day. The 60P dehumidifier is 10. 22 inches in length, 15 inches in width and 20. 35 inches in height. It shall be made available in only one color i. e. white with a warranty of 5 years.

Features:

It is prescribed that the agreeable 60P dehumidifier ought to be put in a room measuring 100-200 square feet. The item Features electronic controls, three fan speeds, a gathering holder and a lattice channel. You can favorably change the choices through the electronic controls, as all you need to do is press a catch. The controls additionally permit you to control the product of dampness in the room with three fans speed. The compartment has a level pointer, while the channel is launder able and can uproot dampness and contaminations. The item is furnished with caster wheels and handles, making it a remarkably versatile dehumidifier. It is planned to manage at level temperatures and close down programmed. The item incorporates a condensate container. This pail, which is removable and outfitted with a handle, can hold something like 16 pints. The item qualities a magnificent set of advanced touch controls for example self-defrost and humidistat. It likewise incorporates a slide-out channel, which is launder able.

Comfy 25P Dehumidifier:

This dehumidifier has a capacity of 25 pints. This means that it can remove the moisture equivalent to 25 pints or 12 liters per day. The Comfy 25P dehumidifier is 10. 22 inches in length, 6 inches in width and 17. 5 inches in height. It shall be made available in only one color i. e. white with a warranty of 2 years.

Features

It is recommended that the comfy 25P dehumidifier should be placed in a room measuring 50-100 square feet. It is prescribed that the agreeable 60P dehumidifier ought to be put in a room measuring 50-100 square feet. The item qualities electronic controls, three fan speeds, a gathering holder and a lattice channel. You can favorably change the choices through the electronic controls, as all you need to do is press a catch. The controls additionally permit you to control the product of dampness in the room with three fans speed. The compartment has a level pointer, while the channel is launder able and can uproot dampness and contaminations. The item is furnished with caster wheels and handles, making it a remarkably versatile dehumidifier. It is planned to manage at level temperatures and close down according to the program. The item incorporates a condensate container. This pail, which is removable and outfitted with a handle, can hold something like 16 pints. The item qualities a magnificent set of advanced touch controls for example self-defrost and humidistat. It likewise incorporates a slide-out channel, which is launder able

Comfy 40P Dehumidifier:

This dehumidifier has a capacity of 40 pints. This means that it can remove the moisture equivalent to 40 pints or 20 liters per day. The 040P dehumidifier is 15 inches in length, 8 inches in width and 18 inches in height. It shall be made available in only one color i. e. white with a warranty of 3 years.

Features:

It is prescribed that the agreeable 60P dehumidifier ought to be put in a room measuring 100-150 square feet. The item qualities electronic controls, two fan speeds, a gathering holder and a lattice channel. You can favorably change the choices through the electronic controls, as all you need to do is press a catch. The controls additionally permit you to control the product of dampness in the room with two fans speed. The compartment has a level pointer, while the channel is launder able and can uproot dampness and contaminations. The item is furnished with caster wheels and handles, making it a remarkably versatile dehumidifier. It is planned to manage at level temperatures and close down in accordance with the program. The item incorporates a condensate container. This pail, which is removable and outfitted with a handle, can hold something like 16 pints. The item qualities a magnificent set of advanced touch controls for example self-defrost and humidistat. It likewise incorporates a slide-out channel, which is launder able

Placement

The production plant will be located in the vicinity of our already operating refrigeration plants. Warehouse will be attached with the factory and products will be selling to local shops to the wholesaler stores and shall also be exported.

Promotion

We plan to promote our product through different types of strategies:

Advertising

Product Awareness:

We will put great emphasis on advertisement and promotion of Comfy Dehumidifiers to spread awareness and to position it in a desired manner in its introduction stage. However after spreading the awareness of our product completely to our target market, we will do institutional advertisement in the later stages of its life cycle. We shall be using following promotion tools for our product in its introduction stage.

Public Relations:

We will use ” Public Relations” to promote our product. In this regard, we will develop special programs like ” There is no substitute for your comfort and Health. We will conduct ” news conferences” in which this program will be played and different media representatives will be invited to attend the conference. We have also planned to go for ” sponsorship marketing” and we will sponsor events which include sports events in different universities and colleges in Manhattan Columbia and New York.

Advertising through Television Radio and Magazines:

We will advertise our product on different media that include television, radio, magazines, newspapers and direct mail. On television, we will run our advertisement on ABC channel during the popular program ” How I met you Mother” at 7 pm. We would also buy time slots on sports channel and news channels. On radio, we will be using New York’s famous sports channels to run our advertisement. We have planned to buy the time slots during the popular programs which run on Sundays between 6pm and 8pm and Tuesdays 9pm to 12 am. We will advertise our print ads in Journals and magazines. We will distribute flyers in almost all kiosks, department stores and chain retailers. We will do outdoor advertisement by placing billboards on prime locationsSince internet has become a very effective promotion tool in today’s age, so we will advertise our product on different websites, blogs, forums and on social mediums like Facebook and twitter. In sales promotions, we will offer ” Cent-off deals” by offering our product on slightly lesser price to stimulate short term sales of our product. Lastly, we will offer our retailers ” case discounts” if they order more than 50 dehumidifiers.

Push Strategy

We will promote out product by selling dehumidifiers to the retailers.

Trade Promotion

We will give our intermediaries special price discounts and incentives.

Production:

Fast Electronics technology and operations are designed to minimize risks. The machines will be feasible and will easily handle by the labor. Human labor will also trained and skilled. In addition to manufacturing process, management team has mapped out an approach that will satisfy customers in a better way than that of the competitors in the market.

Raw Materials:

The raw material used by the firm shall be stocked in excess so that we can meet the orders at time.

Operation Plan :

The plant is divided into three areasManufacturing areaInspection area

Hierarchy in the Organization:

TableAs mentioned in the figure, Four Vice presidents of different departments shall report directly to CEO of the company. We will hire a special budget analyst for Comfy Dehumidifiers because it is very crucial for us to estimate the right supply and future costs in the introduction stage . In marketing department, there is a special channel manager working for Comfy Dehumidifier’s marketing. Similarly, under manufacturing department, a product manager is responsible for keeping track of manufacturing of Comfy Dehumidifiers in regards to its supply and demand.

Evaluation Phase

Our company will setup different evaluation methods. Financial evaluation:

Budget & Variance analysis

Annual budgets will be prepared for the product and actual sales will be compared to budgeted figures and variances investigated. Budgeting analyst of Comfy Dehumidifiers will compare extrapolated sales figures with actual sales figures and would suggest essential steps for improvement.

Financial evaluation:

Marketing Metrics and ratio analysis

Weekly sales by channels will be tracked and the results of each promotional activity evaluated. We will evaluate different marketing metrics, such as sales vs. % margin, sales vs. Cost of Sales, % Difference in Sales and Margin, analysis of contribution to sales & margin.

Non-financial evaluation

At the introduction stage of a product, customer’s satisfaction and acceptance is very important so we will keep track of customers’ satisfaction rate by continuous survey on face- book, twitter and on our website. At the same time, the rate and figures of product consumption is also very important for our product. These results will not only be used as a kind of evaluation tool, but also a kind of first date for future expansion. If we get great success in USA, we will expand our market to Canada and Asian Countries soon.

Social Marketing Evaluation

We will closely monitor the reviews and feedback of our customers on social Media. (Marketing Principles and Applications Marketing Plan )

PRODUCT LIFE CYCLE

TimeProductDevelop-mentIntroductionProfitsSalesGrowthMaturityDeclineLossesInvestments ($)Sales andProfits ($)This item life cycle comprises of total interest over a wanted time of time. A life cycle could be scavenged by plotting total bargains volume for a profound cooler as time goes on generally years.

Phases of item life cycle:

Administration must have the capacity to distinguish what part of life cycle its item is in at any given time. The completive nature and promoting methodologies that ought to be utilized conventionally relies on the specific life cycle stage. There are four phases of feature life cycle and demonstration of every is given beneath

Introduction Stage:

This stage once in a while reputed to be pioneering stage in which a feature is started into the business sector in a full scale advertising system it has endured item improvement, incorporating thought era, thought screening, model and market tests. For new features ordinarily there is almost no immediate rivalry. Our Product the Comfy dehumidifier is in the presentation stage.

Stage Gate Model:

This is the Stage Gate for Comfy Humidifier. At each Gate four decisions can be taken about the future of our dehumidifiers. Go, Recycle, Hold or Terminate. The decision depends on the success of each stage. Product DevelopmentGate 3Pre Launch checkGate 2Project AnalysisGate1Discovery stagePost Launch CheckGate 4

Work Breakdown Structure

Deliverable 1: Vendor selection•Prepare Request for Proposal•Invite bids•Evaluate bids•Select vendor and place orderDeliverable 2: Requirement Analysis•Project plan preparation•Requirement definition and analysis•Preparation of software requirement specificationsDeliverable 3: Design•High level design•Low level design•Design acceptanceDeliverable 4: Construction•Coding as per design•Unit testingDeliverable 5: Data collection/ Conversion•Preparation of data format•Data collection•Data conversion and migration•Data entryDeliverable 6: Testing•System/Integration testing•Acceptance testingDeliverable 7: Hardware Installation•Install operating system and system software•Conduct hardware testsDeliverable 8: Hardware Installation•Install software•Conduct software testsDeliverable 9: ImplementationDeliverable 10: Training•Identify training needs•Conduct training

Results and Recommendations

After directing a complete review of the business and holding an examination over the situation we have planned the taking after discriminating focus whose legitimate execution will determine that our new feature launch will have the insignificant danger of inadequacy

Extension of Dealer Network:

Dealer system might as well totally be broke down with the distinguishing proof of feeble zones. Our conglomeration is one of the greatest and for the most part dependable associations of United States of America. It should amplify its dealer system to catch n corner of America so its clients don’t face situations observing the accessibility of existing and recently started features.

Proper Promotion of the product:

Proper announcement and commercial of Comfy dehumidifiers is needed. This might make individuals increasingly attentive to the item. Its headlines which separate it from those of the contestant’s items ought to be highlighted. Moreover because of the present subsidence in United States of America and trekking fuel costs, earnings level has descended while expanding the costs of items and accordingly decreasing the buying force of normal man. The rivalry in industry is likewise developing more than at any time in the past.

Proper Research and Development:

It is vital to undertake a far reaching research about demographics, items, inclination, necessities and conducts of client for existing and new items.

Identification of crux purchasers:

A depiction of the crux target purchasers and clients is needed. Client dissection empowers you to ponder the necessities and needs of your clients which in turn expedite you to configuration item consistent with the yearnings of your client. Sales Promotion objective: To guarantees that the sales promotion plan ought to be composed to propel dealers towards furnishing engaged and anxious uphold in showcasing the item and in the meantime it will decrease the motivators and increment the gainfulness.

Advertising Goals:

Advertising plans ought to be used fittingly to uphold promotion of the item.

Distribution strategy:

Competitive business sections the association will contend in. This is an additional paramount system which should be achieved to give a focused playing point to our association over its contenders.

Distribution Channels:

Proper appropriation channels are truly significant to expedite the clients and additionally dealers of the item. Absence of fitting dispersion channels has been one of the major situations and it ought to be determined at the nearest conceivable opportunity.

Pricing Strategy:

Cost method should be diagramed again. The evaluating might as well as per the value of contender’s item. Cost is a number component in the showcasing intermingles. It has a straight effect on the client, business. To the purchaser, the value is a major marker of the nature of exceptional and a significant variable in settling on choice about its buy. In choosing the value the business administration must think about the sort of rivalry in the business for the great, the versatility of interest for item, its cost of handling and whatnot. Conglomeration ought to be well mindful of the getting force of the normal people of United States of America and it might as well attempt to exhilarate their living standard & attempt to meet their wants observing necessities of refrigeration items and Dehumidifiers. So association might as well attempt to concentrate on this share of social order, while setting the costs.

Incentives to retailers and clients:

Special motivators could be offered to the clients and dealers to build the deals of the item.

Future Outlook:

The economy is needed to perform well in the following year notwithstanding it is presented to certain tests like Inflation, Hiking fuel costs, expanded rivalry in the global business and expanded utilization of the results of China. It is still trusted that national economy will press on to develop and climbing thriving will carry broadening chances for the Engineering Industry and for our Company. The association will press on to concentrate on expense adequacy, value models and best after bargains utilities to our esteemed clients. We want to go more remote, quicker and higher than we have ever been in serving the hobbies of our clients, shareholders and representatives.