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Company G is a well-established company dealing with electronic goods in the market. The company is aimed at making sure that the consumers get high-quality and innovative electronic products that suit their needs and meet their expectations. The DripCo coffee maker is one of the small appliances designed by the companys designers and engineers introduced into the market through the use of various distribution, advertisement, and promotional channels to all the potential customers. This small appliance will be intended for people who like using electronic appliances at homes and offices. This report will give a general overview of the product, its marketing factors, SWOT analysis, five forces analysis, and other analysis and details regarding the launch of the DripCo, Company Gs automatic electric drip coffee maker.

Product Description and Classification

Description and Support of the Mission

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The DripCo, Company Gs automatic electric drip coffee maker, is one of the small electronic appliances developed by the engineers and designers of the company through prototype testing which has shown that the visual design features of the DripCo coffee maker is appealing to the potential customers as they give an associated artistic and quality elegance.

The appliance uses an automatic drip brew method with advanced heating elements, brew basket design, and spray heads. Other additional features include clock timers for the automatic start of the appliance, water filtration, and a built-in coffee grinding compartment. DripCo is an automatic appliance which comes with a 5-year warranty which is very unique in the industry as compared to the other competing companies.

The production process of the electric drip coffee maker is very simple and efficient as it reduces labor costs and the production-line time needed. This shows that there is a reduction in the wastage of raw materials. This reduction of the production costs and also relatively small front-end investment could enable the company to have an ability to increase production of the coffee maker at a relatively cheap production costs. The latter, in its turn, could make the company to emerge as one of the low-cost producer in the production of electric coffee makers in the small-appliance industry market.

Company G Mission Statement

The mission statement for Company G gives a summary of the business core values aimed at enabling easy and effective communication with the consumers of electronic appliances. The mission statement is as follows:

We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronics solutions.

The companys mission statement highlights the strategic goals of the business in the promotion of small electronic appliances to households and offices so as to enable an enhanced customers social well-being. The main goals of the company is to increase customer satisfaction levels of the small electronic appliances, to create highly unique and superior brand, to achieve an enhanced and effective distribution mix, and to increase the awareness of the business.

The company is aimed at improving lives of people through the production of innovative electronic solutions which makes the electric drip coffee maker to be the perfect solution. Through extensive testing, this product has demonstrated that it might be a very successful small electronic appliance in the small-appliance industry which could enable the support of the mission statement of the company. Due to the large number of potential customers, the product is deemed to be very successful in the market as well as being very profitable to the company.

Some of the unique features of the DripCo which support the companys mission statement are:

5-year warranty which can allow the customers to return the product easily in case there is any failure or malfunction. This shows that the company demonstrates its mission to provide high-quality products.

An auto-stop drip coffee maker makes the appliance very easy to use as the customers could be assured that when the coffee is brewed, the appliance will automatically stop. This makes the company to provide unique, high-quality, and highly innovative electronic solutions to the customers.

Consumer Product Classification

DripCo falls under the shopping goods category in the consumer product classification system. Consequently, the DripCo is a high-risk product that the customers have to compare with the available substitutes so as to make sure that they get high quality and real value for the money spent on the purchase.

Target Market

The target audience of this electronic drip coffee maker is households and offices because there is a high likelihood of many people purchasing the coffee maker at homes for home use or even for the use in offices. Many people in offices like drinking tea during break hours which makes the electronic appliance suitable for them as well as those living at homes especially the ones who like having evening tea or do not have time to actually make the coffee themselves.

   

Details

Demographic information

Age

At least 16 and above

 

Gender

Both male and female

 

Ethnicity

All races

 

Income level

Middle high income

 

Education level

High school and above

Geographic information

Residence

Urban

Psychographic information

Lifestyle

People who like using small electronic appliances

 

Behavioral information

Behavior profile

People who love taking coffee during work breaks or even during their free time

Need for small electronic appliances

Competitive Situation Analysis

Analysis of Competition using Porters Five Forces Model

Company G might face major threats and challenges in the marketing of its DripCo products in the US small-appliance industry. According to Porter (2004), the company can be successful in the marketing of the DripCo through the use of the five forces framework in the determination of the pressures and forces from the close competitors in industry.

Competitive Rivalry: The threat of rivalry in the small-appliance industry is very high since there is an increase in the number of companies entering the small-appliance industry because the market is very attractive due to its increased economies of scale and reduced production costs. This intense competition in industry causes product differentiation, stiff prices, and intense marketing promotions. Company G faces intense competition from companies like BUNN, Keurig, Bonavita, Kuisinart, and Hamilton.

Potential New Entrants: The threat of new potential entrants' appearence in the small-appliance industry is very high. This is because of the low costs involved in the production of the small appliances and reduced labor costs. The increase in the number of companies entering this industry could influence the prices of the appliances upwards which could lead to a reduction in the profit levels of the company.

Bargaining Power of Buyers: The bargaining power of the buyers is their ability to influence the appliances' prices downwards which could have an adverse effect on the companys business operations. The buyers' purchasing power in the small-appliance industry is very low because of the large number of buyers and the products' low prices which could make the former not be able to demand volume discounts.

Bargaining Power of Suppliers: The suppliers' bargaining power in the small-appliance industry is very low because of the large number of suppliers of component parts and raw materials. This shows that Company G has many potential suppliers. Thus, low supplier power could give Company G the ability to be able to provide appliances at relatively low and reasonable prices due to the low costs involved as the suppliers have no influence on the prices.

Substitutes: The threat of substitution in the small-appliance industry is moderate. There is no direct substitute for the DripCo. This is because the Company Gs DripCo is a coffee maker with unique features that are not found in other coffee makers. Before the production of DripCo started, the customers have used other manual and sometimes very dangerous coffee makers because they were supposed to stay on watch throughout the coffee brewing process which made it very tiresome and time-consuming. Company Gs DripCo addressed all the concerns to the consumers as the automatic drip brewer became less energy- and time-consuming. There are still other coffee makers available in the market although they do not offer the same features as the DripCo.

SWOT Analysis

The table below shows the SWOT (strengths, weaknesses, opportunities, and threats) analysis of the Company Gs DripCo.

STRENGTHS *indicates core competency

Strong brand name

Small front-end investment

Technologically advanced

WEAKNESSES

High dependency on suppliers

Less funding source

Weak supply chain

OPPORTUNITIES

Potential to mergers

Low-cost production

Expansion into the online platform

THREATS

Low entry barriers

Stiff competition

Product imitation

Strengths

The companys strong brand image and strong reputation can enable the consumers to be very confident in terms of the use of the products offered by the company. Company Gs logo and brand is highly recognized as being one of the best player in making electronic products for consumers. This reputation can enable the company to get a sustainable competitive advantage over the other competing companies and make this strength be core competency.

Company G has a relatively small front-end investment from new products. This is one of the core competencies of the company. This gives the company an ability to save money and enhance profit yielding from the product.

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With the advancement of technology, Company G is technologically advanced and has the capability to be compatible with the changes in technology which makes the product to have its unique features over the same or similar products being offered in the market by other competing companies. This is also another core competency of the company.

Weaknesses

Company G is highly dependent on the suppliers in terms of all raw materials. This can be very hazardous to business because the risk associated with the production interruption is very high. This could lead to an increase in the suppliers' bargaining power which could affect the companys business operations in terms of profits meaning that the company may generate lower profits.

The company has less funding as compared to other competing companies in the small-appliance industry. This is because the competitors have more resources and funds to cater for all the advertisements and promotions of their products as compared to Company G.

Company G has low and weak supply chain as compared to other competing companies in the industry because other companies have been in the market long enough to establish a large clientele base and supply chain for their products.

Opportunities

Company G has the potential opportunity to create mergers with other companies. This can create a great opportunity for the company as it can enable it to enjoy the benefits of the many distributors in the market. This could increase the revenue generated from the increased sales of the products.

Company G has the potential to be a low-cost producer in the industry. This is due to the low production costs at the disposal of the company which could give the company an opportunity to expand into new markets and increase its profit margins.

The company has a great opportunity to expand into the production of small appliances into the online platform. This opportunity will make the company to access a much larger market for small appliances as internet use is rapidly increasing in the household use.

Threats

Low barriers to entry in the industry is one of the threats that the company faces because it makes it easier for the new entrants to step into the market. This could mean that Company G could be facing more competition from other new potential players in the industry.

Company G is currently facing stiff competition from other companies in the small-appliance industry with strong brand names like BUNN, Keurig, Bonavita, Kuisinart, and Hamilton. This could lead to price wars and a decline in the profits as the company will be forced to manipulate the prices of its products in order to respond to the price competition from the competitors.

Other competing companies can come up with imitation products which could make the consumers change their purchasing decisions to much cheaper ones and low-quality products. This could tarnish the brand image of the company for the customers because after having an experience with an imitated product, the customer will not be willing to purchase the original one from the company even though it is much costly than the imitated product but of a very high quality.

Market Objectives

Product Objective

Company Gs product objective for the DripCo is to increase the revenue generated from the product sales to the target demographic group by more than 50% by the end of the first year of operations.

Price Objective

Company Gs price objective for the DripCo is selling the product at the lowest price possible and lower the production costs by more than 50% per annum in order to increase annual profit levels. This is a realistic objective because of the companys competitive advantage of low production costs. The competitors' price data makes the objective to be measurable; and the strict deadlines for goal achievements makes it to be time-specific.

Place Objective

Company Gs main objective towards the DripCo is to increase the total sales by more than 20% in each of its distribution locations annually. This objective is not based on the competitors' trends but on the companys small appliances which makes it to be realistic. The number of sold units and net profit makes the objective to be measurable and time-specific due to the deadlines of meeting the goals.

Promotion Objective

Company Gs promotion objective for the DripCo automatic coffee maker is to increase the number of online sales by more than 80% in the first year of the business operation which makes the objective to be measurable and time-specific.

Marketing Strategies and Implementation

Marketing Strategies

Marketing strategy of Company G is the approach taken by the company towards reaching its overall goal through the utilization of the strategies for the companys marketing mix. Thus, the company is able to attain its goals (Jain & Haley, 2009).

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Product Strategies

Reduce production inefficiencies: The costs are predicted to decrease as the production practices and designs improve.

Increment in the production levels: The company will benefit greatly from an increase of the quantity of products.

Partnering with online venues: Most of the people today conduct online search for items they want to purchase; thus, online ads can add great value to the company. These online venues like e-bay can ensure that the product is sold very quickly.

Price Strategies

The use of penetration pricing strategy: Since Company G can be able to cheaply produce its products, it can still undercut the prevailing market prices while providing customers with the products of excellent quality at the same time.

Positioning the DripCo as a low cost product: This could make the company to gain more profits from the product sales in the market.

Evaluation of the production costs available: All the costs associated with the production of the coffee makers should be determined so as to enable cost saving.

Place Strategies

Partnering with local distribution stores: The local stores are convenient places where the consumers purchase most of their products. This will make the products readily available for local customers.

Ensuring that the product is distributed in the relevant geographical area: the product can be distributed in the areas where the target population is likely to be found.

Storing the products close to the distribution areas: This would enable the company to minimize all costs for transportation of the product.

Promotion Strategies

The use of social media ads: This can be used to target the exact demographic segment.

Online advertisements: Advertising online can reach more audience as the use of the internet has increase with the advancement in technology.

Newspapers and TV campaigns: This is effective for targeting certain demographic segment.

Explanation of Strategies

The combination of the 4Ps strategies can enable Company G to attain its goals. The product strategy solidifies the companys position in order to produce high-quality automatic drip coffee maker cheaply. The price strategies can enable the company to penetrate the market easily due to the low production costs (Jain & Haley, 2009). The place strategies enable the company to focus on cutting down distribution costs by reaching target demographic group. The promotion strategies help the company to increase the product awareness of the customers so as to increase the sales volume and profit levels.

Marketing Implementation

An action/tactic plan is very essential for Company Gs DripCo Automatic coffee maker. This action plan gives an overview of the main tools used in the attempt to attain strategic objectives. The action plans for the strategies discussed are as follows:

Product Action Plan

Tactic

Due Date

Responsible Party

Determination of all production costs

25 May, 2016

Engineering and Design Team

Space acquisition to increase production

20 May, 2016

Operations Manager and Production Manager

Contacting the online venues for partnerships

30 May, 2016

Marketing Team

Price Action Plan

Tactic

Due Date

Responsible Party

Setting of product price

15 May, 2016

Marketing Manager

Determining all the costs which can be cut down/reduced

10 June, 2016

Marketing Manager

Analyzing all the current production costs

29 May, 2016

Marketing Manager

Place Action Plan

Tactic

Due Date

Responsible Party

Discussing partnerships with local stores

15 June, 2016

Marketing Team

Locating distribution areas for the products

15 June, 2016

Marketing Team

Determining storage location for the products

15 June, 2016

Marketing Team

Promotion Action Plan

Tactic

Due Date

Responsible Party

Designing of social media ads

15 June, 2016

Marketing Team

Designing of online ads

15 June, 2016

Marketing Team

Designing and making newspaper and TV ads

15 June, 2016

Marketing Team

Monitoring Procedures

In order for Company G to evaluate different strategies efficacy, it has to have monitoring procedures so as to make sure that the marketing efforts are geared towards the profitability of the company.

Monitoring Activity

Due Date/Frequency

Responsible Party

Evaluation of revenue changes from the target demographics

Monthly

Management Team

Product costs evaluation and the percentage profit examination per each sold unit

Quarterly

Management Team

Conduction of sales market research per location

Monthly

Sales and Marketing Managers

Determination of the generated revenue and gained customers due to the promotions

Monthly

Sales Manager

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