Positioning of Tangible Product Background

¶ … positioning of Tangible Product

Background / Current Situation

Product Analysis

Market Analysis / Competitor Analysis

PESTEL Analysis

Political Environment

Economic Environment

Social and Cultural Environment

Technological Environment

Environmental Environment

Legal Environment

Marketing Objectives

Financial Objectives

Marketing Strategy

Target Market

Unique Selling Proposition (USP)

Product

Price

Promotion

Distribution

GANTT chart of Proposed Marketing Activities

Appendix II Proposed Budget

The product RSP-150 Solar Power Maintainer is an environmentally viable product with rescue features. The product provides essential support for the battery in terms of its features of utilizing solar energy to charge car and leisure battery. The product has not yet attained its potential for market share. The capabilities of product should be highlighted with increased advertising and a re-positioned product approach. The product re-positioning is gained thorough analysis of internal and external environment and revamp of marketing strategy.

The marketing mix for the product incorporates a care pouch for the product and competitive pricing strategy. The United Kingdom market should be captured through an integrated approach of product promotion. It includes social media, print media, and direct marketing activities over the period of September 2013 until April 2014. The marketing objective is stated in terms of increase in customer awareness for 40%, a gain in market share of 25%, and sales increase of 20%.

2. Background / Current Situation:

The Product:

The solar power battery maintainer is basically a charger used to charge car or leisure batteries. It is a used for 12 Volts batteries. The charger has a suction cap installed enabling it for wide screen mountings. The product also has Light Emitting Diode (LED) light to indicate the charge. The product can also be used for overnight connections as it has a 2.7 meter long wire lead. The 12 Volts DC plug can be inserted in car's lighter holder. Battery clips are also attached with a lead for connection with battery. The dimensions of the product in box are H520 x W170 x D30. The weight is 675 grams with 1.5 watts capability. The product is also available in two other capacities with relatively large sizes, however currently only RSP-150 Solar Power Maintainer is considered for market assessment and repositioning.

Current Product Position:

The product position can be denoted as effective product in terms of using renewable energy to charge batteries as well as it is also effective in providing a rescue assistance in case of an uncharged battery. The quality and reliability of the product is high. The serviceability of the product is significantly moderate. However the product failed in achieving high share of the market due to numerous factors discussed in the next section. The technological features of the product are appropriate to position it well within the market.

Reasons for Product Failure:

The solar power battery maintainer failed to gain its expected market position due to multiple reasons. This major reason is observed as a failure to highlight its salient features and effectively communication it through marketing and advertisements. The marketing strategy of the product is not effective hence it does not provide required support for the product to be gain its popularity. The second reason is its public perception as solar battery charger is associated with only working on sun. However the maintainer can also be used with the car lighter. The customers are not aware of its salient features (Thieberger, 2011).

3. Product Analysis

Key Features:

The solar battery charger maintainer has a salient feature it starts charging automatically as soon adequate exposure to the sunlight is available. Additionally the product has a number of salient features that support its operations and facilitates customers. The product is fully weather resistant and could work efficiently in any weather with continuous operation in open environments. The most advanced feature of the product is that it does not drain the battery even after leaving it overnight. The overcharge is not allowed hence the system turns off automatically as soon battery is charged. Suction caps can be used to fix the product either inside or out the vehicle (Ring).

Pricing:

The product is sold at a price of £25.00 within the UK market. However there are multiple offers also associated with the distributors of product. A discount of 10% is also offered with the product in case of possessing a card for shopping through the website. Hence the discounted price is £22.50. The Go Outdoors store has it available for online purchase and lowest price is guaranteed through their lowest price guarantee policy (Go Outdoors).

Unique Selling Praposition (USP):

There is a unique selling position of the product that it uses solar energy to charge 12 volts battery. It can be used for charging batteries of vehicles, entertainment batteries, and while on the holidays and closed home it can automatically charge battery used in various appliances. It has an outdoor as well as an indoor usage which facilitates the users to maintain their batteries during their country holidays as well as in case of installation at home the batteries are charged while at return. These salient features define the product as a unique selling positioning.

Current Target Market:

The current target market of the product in United Kingdom is the outdoor activities. The product is marketed for the travellers, outdoor camping's, and holiday makers. The features highlighted of the products as well as its placement on the stores and websites for outdoor holiday makers is observed. It is also sold through DIY sections of the stores which indicate that the intended market of the product. The current target market is determined on the basis of marketing strategyfollowed to promote the product and its placement in relevant sections of stores (Go Outdoors).

4. Customer Analysis

Current Customers: (profile):

The current customers of the product are holiday makers in country sides, individuals of families going for camping holidays. The car owners living in midland and northern side of the country also use this product. The customers from young (15 years) to middle age (24 years) usually go for buy the product as a backup and rescue device to facilitate in charging car, caravan, and home appliances batteries.

Purchase Behaviour:

The purchase of the battery is seasonal as it features for winter usage. The excessive usage of car battery is observed during winter by utilizing excessive heater and wipers. The average battery life is observed as 2 to 3 years. The product can significantly improve it for two more years providing adequate charge for battery to maintain its working. In summer the product is purchased for country side holidays and camping.

5. Market Analysis / Competitor Analysis

Market Analysis:

The market size of specific product can be drawn from the camping, caravan and country side holiday makers. The significant number of 75% holiday makers is reported to take their own car as means of transportation to their destinations. The trend of camping and carving is reported as increasing in United Kingdom. The major reasons for such increase are recession and low incomes. These holidays are likely to cost less than other holidays. The rise of family holiday makers is also a healthy indicator for product market (Mintel 2011). It is also reported that 14% of the residents in London are likely to move out for the camping holidays during the season of Olympics. This indicates that people in London also like to move towards country side for holidays can consider buying the product (Mintel 2012).

Competitor Analysis:

The major competitor of the product is Nikkai with almost similar features. It is also noted that the price of the competitor is relatively low for the basic product. However the addition of the cord makes it exactly the same price as the product. The additional cord is already added in Ring's product without charging any extra amount (Amazon 2011). The product Rings solar power battery maintainer is also available with two other models however the competitor does not offer other models with increased capacity.

6. PESTEL Analysis

Political Environment:

The political environment of the market in terms of the product is in favour of renewable and solar energy government of United Kingdom is facilitating the green energy and related initiatives. Solar energy is considered as a batter option for energy requirements. The product does not fulfil requirements for complete energy solution however it is a product based on solar energy which is useful for commuters.

Economic Environment:

The overall economic conditions of the market are not quite promising. The economy of the country is in recession. It has multiple effects on the product including the spending habits of the customers. The road side rescue report (Mintel 2012b) indicates that economic conditions of car owners do not allow them to take advantage of the previously used rescue services. It is an indicator of potential opportunity for the product sales growth based on the economic conditions of consumers.

Social and Cultural Environment:

The social position of the product is notably strong as it is a socially viable and appreciated product. The solar energy is used a major input in the product which enables it to be socially appreciated by the communities. At the same time the social awareness is increasing in terms of its viability as a rescue product in case of any battery failure.

Technological Environment:

The renewable energy products are gaining popularity in developed countries. The technology used in the product is using sunlight to transform it into solar energy for chagrining battery. Therefore it is an advanced technology. The usage of solar technology as well as the presence of secondary input through the car lighter is evident that product is designed using the latest technology. The technological environment of the product is rapidly chaining and improvements are incorporated. The product should be analysed periodically for advanced features.

Environmental Environment:

The environmental aspects of the product are most favourable in terms of the product usage and technology used to manufacture the device. The product is considered as a contributor to the efforts of promoting renewable energy alternatives at small scale usage. The portability and environmentally friendly nature of the product is highly appreciated in terms of its benefits for maintain a clean and natural environment.

Legal Environment:

The legal environment of the product is also in favour of such technological products. There are no such legal implications in development, manufacturing, usage, sales, and distribution of the product. However the legal implications should be considered in terms of marketing and advertising materials. It should be clearly communicated to the customers that during extreme unfavourable condition solar charger can only be used with car lighter. It cannot use sunlight as a source of energy and it might affect the device's working capability.

7. SWOT Analysis

Strengths:

Brand Position

Quality Assurance

Reliability of Product

Critical usability

Weaknesses:

Product Positioning

Marketing and Promotion strategy

Market Reach

Opportunities:

Tourism Trends in favour of Caravan and Camping

Market decline for roadside rescue services

Solar energy promotion

Positive environmental factors

Threats:

Low Price differentiation

High market competition

8. Objectives

Marketing Objectives:

The marketing objective is defined in terms of three major variables. These components are important in terms of increasing the customer's awareness through marketing, market share, and sales of the product. These three marketing objectives are having a complimenting effect on each other. The integrated approach is required to achieve these objectives. The customer awareness increase is targeted at 40% as compared with the current customer's target. The market share is targeted at an increase of 25%. The sales should increase by 20% in the targeted period.

Financial Objectives:

Product: RSP-150 Solar Power Maintainer

Current

Projected

No of Units Sold

£ Price

Value of Units Sold (£)

No of Units Sold

£ Price

% Increase

Value of Units Sold

23000

20

460000

27600

20

20%

552000

9. Marketing Strategy

Target Market:

The target market segmentation is based on the key market factors influencing the growth potential for product sales through effective use of marketing and advertising strategy. The market is segmented on the basis of functional characteristics of the product. The travellers by cars for camping sites holiday destinations are the primary target market segment of the product. The second most important segment is the owners and users of cars older than five years. The sub-segmentation of the holiday makers segment is based on the age group as 15 to 25 years of age using their own cars for traveling to camping holiday destinations. The owners of cars older than five years are further segmented as the individuals not using roadside rescue services based on the low to middle income group individuals.

Unique Selling Proposition (USP)

The product has a unique standing in the market regarding its ability to use two inputs. The workability with sun light is the first input. However at the same time product can also be used using car lighter. Moreover the portability and ability of the product to charge car's battery is also a unique selling proposition. The additional lead provided with the product in same price is also and added feature. The product is also available in two different models with increased capacity that is not present in the market through any other competitor.

Marketing Mix:

The organizations can develop a marketing mix based on the target market dynamics and competitive advantage. It provides an understanding of the integrated approach towards the marketing and promotion of the products. The marketing mix is a term used for defining 4 P's of marketing. Individual strategies are developed to compliment the marketing strategy. The four notable elements of marketing mix are product, price, promotion, and place (Distribution)(Gitman & McDaniel2008).

Product:

The product is an important element of the marketing strategy. The product strategy is based on the key features of the product. It is concerned with the products technical, functional, and physical features. The product strategy should focus on satisfying customers' needs as well as providing value to the customers. The recession in the market requires the product to add additional features and value for consumers. The current product provides a number of features as an added value to consumer i.e. The lead for car lighter and dual power input. However to improve the product care a pouch for the product will be added within the same price. It will enhance the products life and provide care for the customer'sportability. The service ability of the product can also be improved through offering subsidized product repairs and replacement of parts for one year. The one year warranty will also create an impact on the customers in terms of increasing product reliability.

Price:

There are several pricing strategies including penetrating, skimming, competitive, and introductory. The pricing strategy is also essential for defining the competitive market position of the product (Gitman & McDaniel 2008). The selection of appropriate pricing strategy is required to increase market share as well as improve the sales. It has direct impact on both elements of the product. The pricing strategy for the product is selected as competitive. The price of the product will be set according to the market survey report generated through extensive market search and applicability of data analysis techniques (Hair Jr., Celsi, Money, Samouel, & Page 2011). The competitor prices will be analysed to provide a competitive price for the product. Target market will also be surveyed in terms of their buying power and affordability