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Pak Thermokool Marketing Report

Autor:   •  November 26, 2017  •  1,871 Words (8 Pages)  •  256 Views

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- Idea Generation: (the company directors had a meeting and thought of six ideas )

- Idea Screening: (from those six ideas, the board short listed 2 ideas, and then finally the thermo kool was chosen as it is not only economical but also more efficient, and is technically feasible to manufacture and was thought to be more profitable compared to the other ideas.)

- Concept Development and Testing: (the company conducted a survey to know what is the first thought that a customer gets when he or she hears the word “thermo kool”, most of them thought of a water cooler. The sellers tried to develop a concept in their mind what the thermo kool is, how it operates and what are its benefits.)

- Marketing Strategy and Development (the company’s segments are lower middle class and middle class and upper class, the prices are supposed to be affordable to encourage people in the lower class as well. The company is going to make the thermo kool using recycled product.

- For advertisement the company decided that the television ads would be most beneficial

- Place: the product would not be available everywhere in the introduction stage it will be available only in limited stores for example in Makro and Metro, while in the growth stage it would be widely distributed)

- Business Analysis:(the company does not have any competitors in the market and in the beginning they expect their sales to be very low and also the profitability is expected to be low while the costs are likely to be very high and aggressive advertisement would be required)

- Product Development:(The first prototype would be made and observed to make sure that it has no defects and works as it is supposed to, if the product needs any changes they would be made accordingly)

- Market Testing: (the company will use standard test marketing and the test city will be Karachi, and based on the response further decisions to continue with the product would be made)

- Commercialization: (the company will analyze the response of the test market and therefore decide if the product should be fully launched or further developments need to be made)

[pic 10][pic 11]

As the product being launched is a new one either one of the two pricing strategies can be adopted that are:

- Market Skimming Pricing

- Market Penetration Pricing

However for our product we will choose Market Penetration Pricing, reason being is that our target market includes people from all social classes, from the lower class to the upper class. As we have settled for relatively lower prices that can be afforded by the flood affected villagers to high class picnic crazies, thus the Market Penetration Pricing will be more suitable. Following this pricing strategy we will keep prices between the ranges of 300 to 700 rupees. By keeping theses low prices in the beginning we intend to attract a large number of buyers and capture a large market share

Discount & Allowance Price: [pic 12]

We will offer cash discounts to our customers. Customers willing to purchase the range of three sizes of Thermo Kool in a single transaction will be entitled to a price reduction of 10%. And seasonal discounts will be given to customers buying thermo kool in the off winter season.

Promotional Pricing

Assuming that the launch of our product is successful and we are able to cover our costs adequately we would also offer promotional pricing in the near future where customers will be entitled to high cut prices will be set below the list prices to create high demand.

Geographical Pricing [pic 13]

Our manufacturing unit is based in Karachi so the transportation costs within the city of Karachi as well as to other cities in Sindh will be much lower as compared to the cities of other provinces which eventually means that the thermo kool will be available at relatively cheaper prices in the province of Sindh as compared to other places in Pakistan.

[pic 14][pic 15]

The objective is the start of marketing plan. Objectives should able to answer the question like “where we want to reach”, what we plan to do?” the purpose or objectives include:

- to enable a company to control its marketing plan

- to help individuals and team to reach a common goal

- to provide an agreed and consistent focus for all functions of the organization

- All objectives must be SMART i.e.

- Specific - Be precise about what you are going to achieve.

- Measurable - Quantify your objectives.

- Achievable - Are you attempting too much?

- Realistic - Do you have the resources to make the objective happen (men, money, machines, materials, and minutes)?

- Timed - State when you will achieve the objective

Market Share Objective

To gain a 45% market share by December 2017.

Profitibility Objectives

To achieve a 55% return on our capital employed by May 2017.

Promotional Objectives

To create awareness of our product in the Market.

Objectives of Survival

To survive the current market war between competitors.

Objectives for Growth

To increase the size of Thermo kool by 35%.

The Promotional budget would be percentage of sales method and we will be allocating 15% of annual sales to the promotion.[pic 16][pic 17]

[pic 18]

SIZE RANGE

2.5-3 KG

5-6 KG

7-10 KG

Total Annual Sales

5000

5000

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