New Product Launch Marketing Plan Essay

Executive Summary erudition Team A has shown in the first-class honours degree two phases of the merchandiseing protrude that individuals exercise for a variety of reasons including obesity, addressed target grocery installs (recreational, physical fitness, and nonrecreational athletes), decisiveness motivators and buying behaviors (individual needs and health concerns), the Product look Cycle, the four Ps, and the proceeds mix. Within this final phase, eruditeness Team A lead be discussing situational summary, foodstuff place harvesting potential and competitive analysis, segmentation, target market, and positioning, expense and distri yetion, and trade communication. Also discussed result be the financial aspect, intended market objectives for course 1, year 2 and year 3, implementation milestones, and finally, evaluation and visualize metrics and methodology to measure effect.Situational AnalysisMy Run buddy offers a impudently innovation in fitness techno logy as the first component part commanded treadwheel. Its increase trade on extraordinary faction of omnipotent design and features ar the key factors for its point of intersection brand discipline and market growth in the fitness pains. Enhancing and implementing strategic marketing envision allow in addition be essential to the success of My Run comrade.Market egress Potential and Competitive AnalysisThere are so legion(predicate) treadwheels out on the market straightaway, individuals try to find just the redress one that bequeath give them just the right workout for their lifestyle. With the modern features that are installed on My Run crony, such as the part ascertain option, Learning Team A believes that this impart escalate My Run Buddy to the top of everyones list of treadmills. Learning Team A estimates that with these modernistic features, sales give be high andprofits go out be generated.Learning Team A compared My Run Buddy with two opposite treadmills that are out on the market today, the LifeSpan Treadmill and the Life Fitness T5-0 Treadmill. After reviewing both of these, the one that comes imminent to My Run Buddy is the Life Fitness T5-0 Treadmill. The Life Fitness T5-0 Treadmill has many a(prenominal) of the same features, warran hook up withs and bell range however, it does non fork out the Voice controller feature. The Voice Command feature is what is unique to My Run Buddy and everyone that uses this machine, whether it be at home or in a gym, will feel satisfactory with the features and enjoy the easiness of programming it to their respective needs. trade StrategiesThe study strategies to market My Run Buddy are aimed toward health and fitness industries. According to Wellsource (2014), in the next five years, an increase of at least 4.2 percent indoors five years is projected for the demand in services and equipment for the multibillion-dollar health and wellness labor. My Run Buddy will reach ou t to priapic and female nodes mostly amid the ages of twenty to forty years old, which does not limit customers who are fifty years of age and above because of the growing demand to promote active health lifestyle for all ages. In addition to the market target express, a small percentage of customers who whitethorn use My Run Buddy include professional athletes preparing for competitions such as marathons or the Olympic games.PositioningMy Run Buddy focuses on its expertness to sour as the first interpretive program commanded treadmill providing extraordinary combination of powerful design, comprehensive product features, and positive health and fitness results to its customers. Its major advantage compared to other existing treadmills is its capacity to offer personalized fitness workouts to ensure safe workouts based on each users health status, vital signs, and intensity of workout.Marketing ProgramKotler and Keller (2012) mentioned that consumers often get out the deci sion to purchase certain products based on how they grasp the expenditure of theproduct is rather than the marketers stated expenditure. The automobile whitethorn verges $100,000, and if some customers perceive the particular price to be conceivable price for the automobile, they will purchase it based on their perception and not because of the fact that marketers denounce the price of the automobile as $100,000. Same customer may feel that $30,000 for polar automobile is too expensive horizontal though he or she felt that $100,000 for the automobile was reasonable for them because they perceive each products differently. Kotler and Keller (2012) also mentioned that customer are less sensitive to price of the product when they believe that 1) there are not too many similar products in the market that can replace the case of the accustomed over product 2) the high price of the product can be justify 3) stated price of the product is just a small represent of obtaining u nique product for the life cartridge holder.Learning aggroup A intends to set the price of the joint commanded treadmill to create the perception that the price of voice commanded treadmill is reasonable enough for a customer to purchase the customized treadmill that can enhance their health status for the rest of their lives. Rather than twinned the price of the treadmill to another remark companys lower price of the treadmill, Learning team A believes it will be beneficial for the company if the company can justify that customers are paying for superior quality of the voice commanded treadmill, and they are saving money for more value on the voice commanded treadmill by paying the stated sell price.Kotler and Keller (2012) stated that companies need to consider four different objectives when they are attempting to determine the direct of durability for their market logistics 1) How should the company handle orders from customers? 2) Where should the company store their p roducts? 3) How such(prenominal) products should the company store in the designated storage space? And 4) How should the company spread out the product to the customer? Learning team A believes it is best for customers to be able to order the voice commanded treadmill from the companys indwelling website or the electronic commerce company, such as Amazon because customers do not always give birth time to visit the local retail locations to order the product.Learning team A believes the company should store voice commanded treadmill in warehouses located in west coast, east coast, and southerly states and usethe fast transportation method, such as FedEx, UPS, and USPS to expedite the burden process. Learning team A does not recommend the company to store excessive amount of voice commanded treadmill in their storage locations, but they suggest that companys logistic professional and sales professional should work together to determine the projected amount of sales for the aban doned period and attempt to clear out the amount of inventory if they become too excessive by promoting clearance sales blushts.Marketing conference PlanMultiple methods of advertising and promotion for My Run Buddy will be used as part of marketing plan for stretchiness out to its target market. Kiosks will be installed in stores and retailers exchange the product, where its shoppers will experience free product demonstration. Discount coupons, extended warranty, free product delivery, or free trial offers are also few promotions to be considered for customers. Other than kiosks in stores, My Run Buddy can also be offered for free trial or deals to different fitness locations such as LA Fitness or Golds Gym. Furthermore, advertising with multiple media such as print, online, television will be employ to spread information slightly the product.Financial InformationOur salute social organisation allow us to pass some savings and still have a solid two hundred% contribution margin which means that even if we start with low profit, we can sustain the operation enough to retard the product establish in the market. Our Policy is to have certain allowances and discounts for wholesalers tie to our AR so our Promotional Pricing follow the succeeding(a) natural constipation (Including Labor, Overhead, and Transportation) per whole $2,000 US Direct Cost (Parts, electronic components, etc) per unit of measurement $1,250 US Contribution Margin Goal (Floor Price)$2,500Sensitivity on natural boodle without marketing expensePrice 1 $3,600 (80% Profit) p unitPrice 2 $3,200 (60% Profit) p unit.We will sell the Unit to the wholesale at $3,600 with a contractual allowance to renew each year of 5% prompt pay discount (less than 30 days), and an additional plenty (more than 10 Units per month) discount of 7% ofthe marked price. This will allow the wholesaler the possibility to pay only $3,181 per unit if they pay on time and order 10 units per month. A savings of $419 per unit or 11.64% discount.Our closest competition based on the specs (4.0 Motor, Absorption pad, Monitor, etc.. but without the voice activation is the Life Fitness Club Series Treadmill (http//www.treadmilltalk.com/treadmill-comparison-chart-5.html) with an sightly price in the US of $5,500.Financial ObjectivesTo start sales with a minimum of 60% ProfitTo increase sales by 2% in category 2, and another 5% Year 3To keep plan under budgetBreak Even AnalysisCost to catch a treadmill unit (Direct Cost) $1,250Fixed Cost (Annual Overhead) $9,000 ($750*12)If interchange for $3,200, then we need to sell 5 Units to break even ($9,000/ ($3,200- $1,250)) If selling for $3,600, then we need to sell 4 Units to break even ($9,000/ ($3,600- $1,250)) If selling for $3,181, then we need to sell 5 Units to break even ($9,000/ ($3,181- $1,250))Marketing ExpensesWe are estimating a marketing expense (promotion, training, etc) of $500 on Year 1, $400 Year 2, and $280 on Year 3 Per Unit these figures are considered in the budget.Forecasting DemandWe are estimating a total of 200 Units sales on year one with an increase of 2% in Year 2, and another 5% Year 3. We will keep the price the same for the first 3 years therefore we expect the following each year Year1 $636,200 in receipts with a 64.7%ProfitYear2 $648,924 in tax with a 64.7% ProfitYear3 $681,370 in revenue with a 64.7% ProfitMarketing ObjectivesYear 1 Establish the Product in the industry To be one of the top 5 brands in the fitness equipment industry among the wholesalers and the consumers.Year 2 Increase Sales on a lull pace To increase the number of wholesalers purchasing our product by 7%.Year 3 Brand Management To ensure consistency between our brand licensing strategy and the overall business goal and to focus on maximizing leverage of the brand.Implementation MilestonesMilestones during this project will be the primary(prenominal) guides to product progression and success. In order to determine w hether the product development and launch is on track our team has decided to set in place milestone or timeline marks to stay on track. Our product will have 4 major milestones with different sub segment goals. The first milestone will be identifying customer needs and within this major category we have to give the following goals business problems, customer requirements, business opportunity, target application and technology requirements/abilities. The min milestone will be to accomplish understanding of the market opportunity. Within this we plan to accomplish industry trends, market size and growth, target market and finally market channels.The third milestone will be entering the market. Within this second major milestone we will accomplish product positioning, competitive strategies, pricing, marketing plan, sales strategy, sales tools and customer support. The third milestone will be a continuous process during the length of the product. The final milestone is generating revenue and the goals accomplished will be establishing partners, channels and leads. The last milestone will also be a continuous process for the length of the product. Milestones may be introduced and revamped depending on the shift of the product lifecycle. Since our team is aiming for continuous growth and success, we are aware that milestones need to be in place and also re introduced so that a cycle does not fail and we stretch out to succeed.Evaluation of Metrics and MethodologyElrod, Susan Murray, and Bande (2013) mentioned that there are four different categories of performance measures supply chain companies consider when attempting to determine the level of effectiveness for their supply chain instruction system financial cost, quality, time, and flexibility. The cost to produce the product, the cost to distribute the product to the customer, and the cost to store the product in warehouse are some of the keyfactors affecting the financial cost category of the supply cha in management performance metrics (Elrod et al, 2013). guests perceived value of the product, level of accuracy of the product, and the ability for a company to distribute the product safely to the customer without any damage fall under the quality category under the performance metrics for supply chain management (Elrod et al, 2013).Learning team A intends to stop similar set of performance metrics by evaluating production cost and inventory cost against the amount of revenue the voice commanded treadmill generated for given period of time to determine if the cost of product is exceeded by the revenue the product generates. Learning team A will also respect how fast the company can distribute the voice commanded treadmill to its customers without alter the product and how well the voice treadmill can perform check to the specific features on the product to obtain customer loyalty.Contingency thinkAccording to Mindtools.com (2014), The need for contingency planning emerges fro m a thorough analysis of the risks that your organization faces. It is also useful in thinking about new and ongoing projects what happens when Plan A does not go as expect?. Contingency planning is highly important to our team and will be the foundation we follow for risk assessment and planning. We will minimize erroneousness and failure by expecting the worse. What if the consumers do not want to buy our product, what if it doesnt sell as much as we thought it would.By preparing for the worse we will be setting up for successful future. Our contingency plan will be to continuously conduct risk assessment disregarding of how well our product is doing. Communicating issues and good ideas will be a constant goal within the product team and shareholders involved. If at any(prenominal) point we need to retrain or train personnel our team is equipped with the information to do so. We will keep documentation of successes and failures no matter how big or small. Finally we will evaluat e performance and implement goals so that we are able to assess how well the product is doing.ConclusionIn conclusion, Learning Team A has shown, within their marketing plan, that the Voice Command treadmill is a unique product that will generate large profits for the proper company in todays society. Learning Team A hasalso shown how this type of treadmill is more advanced than those on the market with the addition of the Voice Command feature and how it will be accepted in the long term by consumers looking for the proper workout equipment to maintain their health. With this new feature, Learning Team A feels that consumers will be drawn to My Run Buddy for their health needs as the innovative features lets them feel more lucky working out and they dont have to worry about calling anyone if there is a medical condition that arises, all they would have to do is tell the machine to contact the hospital.ReferencesElrod, C., Susan Murray, P. E., & Bande, S. (2013). A Review of explo itMetrics for Supply Chain Management. Engineering Management Journal, 25(3), 39-50. Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.).Upper Saddle River, NJ Pearson Prentice Hall.Wellsource. (2014). Market trends project more growth for wellness industry. Retrieved from http//www.wellsource.com/company-news/Market-Trends-Project-More-Growth-for-Wellness-Industry.html Mindtools. (2014). Contingency Planning. Retrieved from http//www.mindtools.com/pages/article/newLDR_51.htm