Marketing plan for Starlet Alarms

Marketing Plan for Starlet Alarms

Starlet Alarms was founded in 1987 and it activates in the security industry as one of the largest companies in WA, in terms of sales. Starlet Alarms sells and installs alarm systems solely for homes, unlike other companies in the industry, which deliver the products for both homes and companies. The company's personnel are formed from two sales representatives, two telesales representatives, one electrician who installs the alarms at the home of the buyers and two directors. The alarm systems reseller directly promotes and distributes their services through their personnel and a quarter page advertisement in the Yellow Pages.

An important issue currently facing Starlet Alarms is the increase of competition in the industry and their registered decreasing sales. A new venture which could aid the company with alleviating this crisis would be that of introducing a new product. The new product is a two-in-one alarm which can detect smoke and fire as well as any break-in entries.

2. SWOT Analysis

The SWOT analysis for Starlet Alarms will emphasize the internal and external factors which might influence the successful outcome of launching the new product, the PortaAlarm. The strengths and weaknesses are internal factors whereas the threats and opportunities are forces of the external environment.

2.1 Strengths

Starlet Alarms is highly specialized in the market of home alarm systems, in comparison to other competitors which also focus on other markets. This makes them more specialized on their particular target market, helps them know their customers better and better identify, address and satisfy the clients' needs.

Starlet Alarms has an extensive expertise in the domestic market of alarm systems and an impressive number of satisfied customers. In addition, they have the reputation of a serious company who offers additional services, such as the home instalment at the domicile of the buyer. Furthermore, the company can count as strength the fact that they customize the sold products based on the particular preferences and requirements of the client and his home.

Another strength comes from the personnel's commitment. However they are reduced in number, they are highly skilled and capable of handling any task. Furthermore, they are devoted to the employer and will increase their efforts in order to increase the company's performances and revenues.

2.2 Weaknesses

During the past year, the company has been faced with decreasing sales. However this was basically due to external forces, it has negatively impacted the company and has materialized in an internal weakness. This leads to the possibility of loosing the trust of customers and business partners. Since decreasing sales could point out to other internal problems and shortages, partners might feel reticent to engaging in operations with Starlet Alarms.

Another weakness may derive from the company's small size. Even thought they are among the largest companies in WA in terms of sales and they have highly skilled and committed personnel, they could still encounter difficulties. In other words, the promotion and distribution of the PortaAlarm could require additional efforts, both financial and non-financial and Starlet Alarms might have to use resources they do not possess. Also, the direct promotion and distribution might prove insufficient and might have to be completed with indirect strategies.

2.3 Opportunities

On the national context, most companies sell their security products to both the domestic market as well as the business community, meaning that their resources and efforts are devoted to numerous destinations. This represents an opportunity for Starlet Alarms as it implies that the competing companies are less specialized on the domestic market.

A new external opportunity, this time deriving directly from the manufacturing of the new product, is the intense interest towards incorporating cutting-edge technologies within alarm systems. This lead to the manufacturing of FireFight's PortaAlarm, a revolutionary product which can now revive Starlet Alarms.

Another opportunity is highlighted by the consumers' market. However initially Starlet Alarms only sold their products to richer communities, living in low-risk suburbs, they now extend their target market to middle income communities, where burglary risks are higher. This is a sad fact, in the meaning that the levels of security are reduced dramatically and you now have to protect yourself against several risks, but this is the world we live in. And if Starlet Alarms do not seize this opportunity, somebody else will. In other words, the increasing rate of criminality increases the demand for home alarm systems, creating as such a business opportunity for Starlet Alarms.

2.4 Threats

There are two major threats generated be the environment outside of Starlet Alarms. First of all, the demand for alarm systems in the market in which Starlet Alarms is established is decreasing.

Secondly, the number of competitors in the industry is significantly higher than in the previous years. In this order of ideas, during the previous three years, twenty new companies began to market their products. Also, ten of the existing companies enlarged their market coverage and pose even higher threats than they did in the past.

3. Marketing Objectives and Strategy

In order to resolve the crisis which Starlet Alarms is currently facing, the company has the possibility of signing a three-year contract with FireFight, the manufacturer of PortaAlarm. This new contract will imply that the reseller purchase a minimum of 600 alarm systems per year at a price per unit of $300. The products will be unbranded and will have to be promoted, resold and installed under the name of Starlet Alarms and on their expense.

3.1 Marketing / Financial Objectives

Signing the three-year contract with FireFight could help Starlet Alarms in reaching their marketing and financial goals. Among the most relevant marketing goals, one could point out:

Maintaining and if possible increasing sales to the upmarket homes where the risks are lower

Increasing sales to the market of medium-price homes where the risks are higher

Increasing the company's market share

Properly promoting and selling the PortaAlarm systems onto both target markets

The financial objective set through this course of action would be a consistent increase in sales revenues. Basically, the sales revenues should increase by $210,000 during the first year of selling the PortaAlarm as follows:

180,000 from selling the 600 PortaAlarms

20,000 from selling the old home alarm systems

10,000 from additional services

3.2 Strategy Statement

In order to implement the best strategies which promote and sell the PortaAlarm systems, the reseller must first identify their target market. As such, Starlet Alarms will focus onto two different target markets, both in the domestic sector.

The first target market is the already established one, formed from individuals registering above medium incomes and living in rather expensive and secure neighbourhoods. This target market is basically located in the suburbs. The second target market will be formed from individuals registering medium and below incomes and living in less secure regions, where the risks of breaking an entry are significantly higher. This target market will be geographically located within cities as well as in the suburbs and will encompass both homes and apartments. The product is addressed to owners and tenants alike.

Once they have identified their audience, Starlet Alarms will have to determine the positioning of their new product. The PortaAlarm will be presented as an innovative item, a breakthrough in the field of home security systems. The reseller will emphasize on the benefits of the new products and basically on the fact that it has two specified functionalities, rather than just one. In other words, it is a product that combines the benefits of two items, increasing as such its efficiency and reducing the customers' costs.

4. Marketing Mix

Once Starlet Alarms has identified its target market and the positioning strategy they will use in promoting their new product, they must get informed and decide upon the four P'4 of marketing: product, price, place or distribution and promotion.

4.1 Product Design and Development

The PortaAlarm is a revolutionizing product of the home security industry and its main characteristic is that it combines the benefits of a smoke alarm as well as those of a break-in alarm. The main features of the product include:

sensors: "each of the 3 infra-red sensors picks up movement and smoke and activates a 10 minute internal siren [...] the 3 sensors can easily be switched to smoke-detection only when the occupants are home, especially at night

The system was designed to be installed DIY (do-it-yourself) in about three hours" (Starlet Alarms). This is different from the traditional alarm systems sold by Starlet Alarms, which require the services of an electrician, who will install the system in half a day. "The control box houses the siren, and is bolted into a wall next to an electrical socket. It is temper-proof with a built-in backup power supply. A hand-held remote control with a PIN number arms and disarms the system and can be left safely by the entrance door

The entire 5-piece system is portable. It can be removed and reinstalled in another place, making it ideal for people who are mobile or renting homes" (Starlet Alarms)

Since the manufacturer sells the product unbranded, Starlet Alarms will resell the PortaAlarm under their own brand. They will also be in charge with packaging the product.

4.2 Distribution Strategy

The distribution channel will be considerably simplified given that the PortAlarm is a DIY system. Therefore, company will no longer have to send their electrician to install the alarm system. His presence within the company is however compulsory for he will have to attend any complaints and additional services required by the buyers.