T&N Dishwashing machine

Nowadays, technologies have reached such level of development that people’s life is easier than it has ever been. We have labor-saving devices like a vacuum cleaner, a steam iron, a camcorder or a dishwashing machine. All of them make our daily routine more comfortable, so we can deal with some home businesses much quicker than, for instance, five years ago. It concerns women as well as men who are often responsible for cleaning home or washing dishes after a lunch. So, here we have understood that even if mankind invented a lot of useful and really great technologies, some of them are not perfect yet, and have obvious drawbacks. For instance, a dishwasher is made, firstly, to save our time, secondly, our energy, and, thirdly, soft skin and manicure of women. However, it is not always as good as it sounds. First of all, majority of dishwashing machines has such limitations as:

· Glassware (there is a possibility of turbidity);

· Plastic, tin, copper things, pottery are not strong enough to be cleaned in a dishwasher;

· Silver and aluminum things can fade;

· Cracked and glued dish;

Tableware with overglaze painting (the painting will not disappear, but may lose color), cutlery with wooden, horn or mother-of-pearl handles.

Secondly, leftover food has to be removed manually, and this process is often very long and annoying. Does not a dishwashing machine exist to keep us out of dishwashing process? One more important issue is connected with energy consumption. The dishwashers are divided into several types according to amount of energy they use:

· A: 0.8-1.05 kWh/cycle;

· B: 1.06-1.09 kWh/cycle;

· C: 1.1-1.49 kWh/cycle.

Here we can make a conclusion that additional expenditure on electricity increase.

So, we present a new dishwashing machine that:

· Is soft and neat with any fragile or made of sensitive materials dish;

· Has a system which remove whole leftover, and it goes to a special compartment;

· Conserves approximately 35-40% of energy in comparison with even the best kinds of modern dishwashers due to energy-saving boiler.

We consider that today’s market needs such type of devices because of increasing pace of life, significantly raised cost of living and global problem of scarce resources. We assume that people will want to buy our dishwasher machine because of its advantages that we have already mentioned, so demand will be high, and customer satisfaction will turn their preferences to our company.

We use societal marketing concept. Firstly, we made a little research about the market and found out that the dishwashers require some improvements. Then, after implementing these ideas we are going to satisfy our customers better than the competitors. Moreover, we concern about society’s welfare: energy-saving technology is a great concept in today’s world where the main source of energy – fossil fuels – is decreasing in a horrific pace.

Our mission is "To help customers save time, energy and money that they can spend on more enjoyable activities”. We want to give our customers high-quality and really useful device. Our main objective now is to enter the market. In terms of SBU’s now our dishwasher is a question mark because we do not exactly know how the market will response to this innovation, nonetheless, the possibility that it will become a star is big. In such case it will require great investments to keep its rapid growth. Then, if it becomes a cash cow revenues will cover our losses, and, furthermore, we will be able to use money we have got from selling our dishwasher for future investigations and inventing new products. Since our product is new and we need to introduce it into a new market, we use Diversification growth strategy.

It is common knowledge that every company has its micro and macro environments. Firstly, we would like to touch upon the aspects of micro environment. Our supplier is the "Tex Line" LLP shop in Almaty, who provides us with necessary materials, the distributors are such companies as "TechnoDom", "Sulpak", "Planeta Electroniki". What about the competitors, our main competitors are "LG", "BEKO", "Bosch" companies, that are well - known producers of electronic products at current market, so the competition is high. Secondly, the macro environment is also important for the company. Demographic environment, the number of population is gradually increasing, people are more concerned with their carrier rather than housework, so they have less time to do it. Furthermore, technological environment, almost every person, even children, can use modern technology, besides there are a lot of unmarried men for these reasons dishwashing machine is very helpful and convenient in exploitation(using). Owing to the level of education that is getting higher, salaries are also increasing, people are able to afford more, science and technology are improved every day so we should keep up with the time.

Before implementing our idea, we have made some research. We used secondary data from the Internet about the previous types of the dishwashing machines, their disadvantages and defects in order to make ours one better. Next we are going to ask people about their preferences, attitudes toward our dishwasher to correct if it is necessary. We will make a survey: ask 500 people “What do you think about the "T&N" dishwasher?” and “What want you a perfect dishwasher be like?”

Furthermore, our consumer market is in Almaty and all related to it regions and nearby towns. Here we face to complex buying behavior, that is characterized by high consumer involvement in buying process (as our product is not the cheapest one, purchased infrequently and also risky for them yet) and perceives significant differences among brands.. Today consumers are offered a lot of types of dishwashing machines, but they do not have enough information of their functions. To this reason, while making the decision, whether to buy our product or not, customers should be aware of it.

Using statistic data from official website of the government of Republic of Kazakhstan we calculated total market demand:

Q=n*q*p=10700000*1*90000=963 billion tg.

Here we have taken men and women at the age 16-63. However, we suppose that only a one-third of them will by our dishwasher because it is a new product and we have strong competitors.

In terms of segmentation we divided the market according to demographic approach. Our main target market is married women, business ladies and single men who are really busy and mostly need the dishwashing machine like ours one. Today population growth rate is considerably increasing; women are tend to raise the career ladder, be successful and earn good salary, but having no time for home businesses. Other women, housewives or those who have many children, often need help, so we can provide this help for them. The last group is the single men who worry about cleaning their homes, thus, they also need the dishwashing machine. From year to year the age when men decide to get married is getting higher (now it is 27 years old), so we have increasing market. Next, all these people are tend to earn enough money for life, entertainments, and, of course, for making their lives more comfortable, so they can afford a dishwasher. And, it is obvious that our mission is absolutely coincides with our target market’s needs. After that we have chosen differentiated market, in other words, we will offer various dishwashers to all target customers. For business ladies and single men it can be the same, but for housewives there should child-resistant system to protect their children and the device from any accidents. The last thing we need to do here is to position our product.

· Product attributes: high-quality, modernized characteristics and affordable prices.

· Benefits: energy-saving, time-saving and delicacy.

Coreness product that we offer is a dishwashing machine. Actual product is an energy-saving, time-saving and delicate dishwashing machine. Also, we can say that it is the features which differentiate our product from competing ones. Stable, guaranteed and checked system is a proof of high quality. Design of our dishwasher is a standard design of dishwashers, but with special compartment for leftover and our brand name on the top of it. Packaging is a box with the picture of the dishwasher, brand name, list of characteristics, transportation instructions and our address. There is polyfoam inside the box to protect our product, using instruction and a guarantee.

In regard to pricing strategy, our company, being new and not well-know yet, is using Market - Penetration Pricing strategy. Setting not high initial price helps to penetrate market quickly and deeply and it is also necessary to keep out competitors.

It should be mentioned that our company uses store retailing. We have factory outlet that is belongs to our company. And it is good opportunity for buyers to make a purchase directly from us. However, as we mentioned before, we have some distributing companies, that are specialty store retailers that carries electronic technologies product lines.

Next step is advertisement. First of all, we make informative advertising because our product is not absolutely new, but has some significant improvements. Next is setting budget. After a little research in the Internet we found prices for advertisement in Kazakhstan and made calculations:

(531250 (10 times at prime-time) + 266250 (10 times at off prime-time)) * 0.83 (7% discount for prepayment and 10% discount as for a new client) = 661925 (1 channel)

We need to advertise in at least 3 most popular channels, so overall we spend approximately 2 mln tenge for tele-advertisement. Also, we need about 1.5 mln tenge for making the video and audio versions, billboards, rotations on radio, web-advertisement and magazines. So, near to 3.5 mln tenge are needed to advertise the dishwashing machine.

The style is a slice of life: three friends, a housewife, business lady and a single man, meet and the first complains about lack of time, the second one suggests her a new dishwashing machine that will save not only her time, all dish, but also money because of energy-saving system, so the third one decides to buy it too. Radio-version is the similar, but a little bit shorter. Billboard and web-versions are a picture of the dishwasher with list of its features.

We suppose that approximately 80% of target market will be exposed (housewives mostly by television and radio, business ladies mostly by web, billboards and radio, single men by all of them).

Advertisement on television and radio is repeated 20 times a day, there are 10 billboards in the city, a web-version on 5 web-sites, and in 5 magazines like Cosmopolitan, Karavan, Sezon, etc. Just right before some holidays like New Year we will advertise pretty harder because in that time people cook more, invent guests, so there are more dish to wash.

After the first, second and third month of advertising we will ask people how do they feel about our product to decide whether it is successful or need some corrections.

We offer our retailers (Sulpak, TechnoDom, etc.) some tools like pens, T-shirts, caps with our logo to promote our brand. Also, we use straight discount: if the retailers will buy enough units of our dishwashers we can make discounts. By the way, we can use contributing money and time in public relation: help orphanages, poor families or old people.

Regarding Selling Process, it consists of seven steps. As we sell with the help of distributors, we also use these steps to ensure them that our product will be profitable for them. So the first step is prospecting - identifying qualified potential customers. Distributors that we have chosen are the companies which customers are frequent (Sulpak, TechnoDom, etc.). We suppose them as qualified leads, as they have good financial ability (they are well-know at current market), possibility for growth and also convenient locations (not far removed from the center of Almaty) The next step is preapproach - to learn as much as possible about prospective customer before making sales call. We made little research from online sources, then we set call objective (gather information) and decided that the best approach is firstly to write an e-mail. During approach step we first time met our distributors and tried to leave positive opening lines. The fourth step is presentation. We present the benefits of our product for them and also customers (all of them are mentioned previously). The handling objections step we seek out the clarifying objections to turn them into reasons for buying. The last two steps are closing and follow-up ones. During closing we made an agreement about the order and then in follow-up step we discussed delivery time and purchase terms.

One cannot deny that analyzing competitors of the company is of paramount importance to create or plan effective marketing strategies. Competitor analysis consists of some steps. Firstly, we identify competitors. In our opinion, as we mentioned above, our main competitors are "LG", "BEKO", "Bosch" companies, that have already known at the market as a producers of high-quality electronic equipments. The second step is determining the competitors' objectives, while doing research we found out that some of them stick to low-cost and technological leadership and others to market share growth goals. Thirdly, identifying the competitors’ strategies. All our competitors are not one year in the market, they have a wide line of products not just electronics, offering high-quality goods at reasonable prices. The next step is assessing competitors’ strengths and weakness. Concerning the strengths of our competitors they are successfully established in many countries, they became reliable, easy to use and have simple design which satisfy customers for a long time. However, we represent new and more improved model of dishwasher and are going to develop further. What about estimating the competitors’ reactions, we suppose they may be slow in reaction and may react not so strongly, as they produce not single line of products. Selecting competitors to attack and avoid. We find "LG" company to be our first competitor, but we cannot leave others. All the above mentioned are our main and strong competitors.

Furthermore, we require well-defined and evaluated competitive marketing strategy to become a successful at the market. One of our main objectives is to become a market leader in the sphere we operate in, so we start from Market Challenger Strategy. We suppose that frontal attack on competitor's strength rather than weaknesses will be more beneficial. As we have already emphasized, we make some improvements of dishwashing machine and increase advertising of it. In most cases we suppose ourselves as market-centered company, watching both customers and competitors and trying to balance attention for them.

Дата добавления: 2015-11-14