Do you hate the hassle of leaning after cooking? Now we will introduce our Innovative new product called 8-1 Versatile Cooking Pro. This new product Is combines the functions of grilling, roasting, boiling, air frying, steaming, stewing, baking, and stir frying (It comes with 2 blades) into one cooking system. It is leading the front end of technology. The 8-1 cooking system replaces all of those common small appliances in our household, such as indoor grill, conventional oven, steamer, dehydrator, toaster oven, rotisserie, and microwave.
The 8-1 Versatile Cooking Pro adopts microcomputer simulating control technology. It can accurately simulates the professional chefs cooking skills, automatically adjust the power level of the different stages of cooking, and can automatically control the cooking time which can reflect authentic cooking. It has a preset time function. You have the flexibility to delay the cooking process up to 15 hours in advance. It also has a keep cool feature; it keeps the meat cool till it reaches the preset cooking time. Setting it up in the morning and your food will be ready when you get home.
What could be easier? The attractive, compact design fits on your kitchen counter or dinner table for convenient service. The bottom liner pan collects fats and oils, making your food tastier and healthier for you. The removable tray helps to make clean up quick and easy. It takes less than 2 minutes to clean up. Company G is striving to make life easier and more enjoyable by integrating 8-1 Cooking Pro into consumers' busy lifestyle. Consumers can enjoy cooking with fewer chores. 8-1 Cooking Pro is a great way to save time, money, and space as well as eat healthier.
Consumer Product Classification 8-1 Cooking Pro falls Into the classification of shopping product according to the three-way classification system. Price Is an Important factor In many consumers' decision-making process. Cooking Pro's selling price is more than 100 dollars due to its multifunction features. Consumers will consider its price and quality before purchasing. Most of households already have small appliances such as microwave, oven, grill. It normally takes longer period to consider buying a new one for consumers.
Cooking Pro will be purchased on a less frequent basis compared to gathering relevant information. Consumers like to research product review online and compare it with other products before making a decision to buy. Cooking Pro may not be found in any grocery store. It will be sold in certain outlets and online only. Considering factors of price, convenience of the product location, planning time, and purchase frequency, Cooking Pro is a shopping product. Target Market The target market for Company G products is people age 35 through 50 who loves to cook, bake, and grill food.
These consumers represent a demographic group of full time working people who will prepare meals for family frequently. They are married or raising family and have an annual household income $40000-$80000. Competitive Situation Analysis Analysis of Competition using Porter's 5 Forces Model By conducting this analysis, we will better understand the competitive forces that could significantly impact the success of product. We will be able to create more accurate planning strategies by analyzing these threats. Competitive Rivalry 8-1 Cooking Pro is the first multiple functions cookware on the market.
Company G has quite of bit of power in the current small appliance market because of its competitive, advanced features. It has a low competitive rivalry at the beginning; however, the introduction of our product into the market will likely cause other firms o intensify their market strategies. Competitive rivalry becomes higher when other competitors enter into the market. Threat from New Entrants Small appliances market has big potential buyers; therefore, attracting many manufacturers of small appliances to enter into the market to gain profit.
There are very low barriers to enter into the market for those companies, such as Caucasian, Black & Decker, Hamilton Beach, and Kitchen Aid. Internet searches enable those companies to compare their products with ours. They can learn about the advantages of our product. They may change their product strategies plan, and implement innovation improvements of their products. If the companies are larger than Company G, they may produce similar products at a lower price than Company G when they enter into the market. That will lead to higher rivalry.
Threat from Buyers Since small appliances are affordable for every household, market demand is larger than supply. Buyers' power is very weak and can't affect product price; however, the lowest price is likely to attract more buyers. Now buyers can search product reviews and compare products online. Our Cooking pro has more features with a lower price than others. The threat from buyers is very minimal. Threat from Suppliers 8-1 Cooking Pro is a new product. Company G needs to find new suppliers. Cooking Pro's unique features require special parts that fewer suppliers can provide in the local suppliers market.
It causes suppliers to negotiate higher prices with enables Company G to find suppliers much earlier. Company G can extend its searching to find suppliers online who can provide high quality parts with lower prices. Company G may consider suppliers in Asia since Asian suppliers always offer competitive price. Company G has a big potential buyer market. It will leads to high refits in coming years. Suppliers are willing to offer competitive prices to become permanent suppliers of Company G, so threats of suppliers are very limited.
Threat from Substitutes There are many similar products with fewer features in the market. Internet shopping enables buyers to compare product features, price, or read other buyer's review. Shoppers prefer to purchase a product with more features and benefits. 8-1 Cooking Pro can replace most kitchen appliances, so threats from substitutes are minimal. SOOT Analysts By conducting a SOOT analysis, we can identify the strengths and weaknesses hat will impact our marketing strategy, as well as the major opportunities and threats currently or potentially relevant in our industry.
Strengths and weaknesses are internal factors that we can control. Opportunities and threats are external factors that we can't control. Through this analysis, we have a better understanding of the overall strategic position of our business and its environment. STRENGTHS Strength 1* having a good reputation in small appliance industry. Strength 2 *having a good relationship network with suppliers Strength 3 having a low debt-to -equity ratio and a high credit rating WEAKNESSES
Weakness 1 Staffs have insufficient product knowledge Weakness 2 Lack of bilingual staffs Weakness defective products at the beginning of sales OPPORTUNITIES Opportunity 1 Extending market to worldwide Opportunity 2 Become supplier of Wall-Mart, Target Opportunity 3 Establish business relations with world renowned retail store THREATS Threat 1 New competitors enter into market Threat 2 Labor cost increase Threat 3 Economic turnaround Strengths Company G has a good reputation, good relationships with suppliers and low debt-to-equity ratio and a high credit are strengths of Company G. Company G has established a home appliance business in the US for 7 years. Company G has a good reputation in the small appliance industry by producing high quality, durable products. Consumers are very satisfied with company's products that enabling current consumers to continue to purchase our new products as well as encourage potential consumers to buy our new products. This is one of the core competencies scale procurement and long term cooperation with current suppliers can enable suppliers reduce the cost of transportation of raw materials.
Product costs are always rower, and Company G can sell their products at lower price than other competitors. This is other core competencies of Company G. 3. Company G has a low debt-to- equity ratio, high credit rating and strong financial strength encourage more investors to invest in Company G. Increasing equity allows Company G to develop more product line in the future. Weaknesses Staffs having insufficient product knowledge, no bilingual skill and defective products at the beginning are weaknesses that may lose potential customers. 1.
Cooking Pro is new to consumers as well as our staffs. Customer service representative may not answer consumer's questions completely due to insufficient product knowledge when consumers call a toll free number. That may lose potential customers. 2. Marketing and Sales departments are lacking bilingual staffs to assist with consumers who don't speak English. That may lose potential customers. 3. There may be many defective products at the beginning; consumers may leave bad feedback, and negative reviews online may lose potential customers.
Opportunities To increase potential customers through expanding our target to the international racket, become supplier of domestic online retail store and establish business relations with world renowned retail stores. 1. Participating in International Product Fair, demonstrating our products in fair to increase product awareness in worldwide. Expending our target market to international buyers, and focuses on Asian market. Asian residences are incredibly compact. Condos are very popular in Asia. Average people live in 700 square feet per household. 8-1 Cooking Pro is space-saver. This is a very strong selling point for Asian residences.
And Asia has a big population. That is very good potential market. 2. Cooperate with domestic popular online retail store, such as Amazon, Wall-Mart. Become supplier of those retail stores to increase sales. Now many shoppers are enjoying shopping online. Wall-Mart offer free shipping to local store at customer's choosing. That attracts many shoppers to shop on Walter. Com. Become supplier of those retail stores to increase sale. 3. Establish business relations with world renowned retail store such as Careful hypermarket. Careful has many stores located in France, Middle East and Asia. Becoming supplier of Careful will increase revenue.
Threats 1 . New competitors enter into market are biggest threats for Company G. The internet reduces barriers to entry because of its potential to lower establishment price and to reach more customers more easily. This makes it easier for other firm to enter into market. 2. Labor expense will increase every year due to the fact that the cost of living is increasing every year. Higher payroll expense will increase product cost and reduce Company G's net income. 3. U. S. Economy is still slowly improving. The unemployment rate remains high. Consumers don't have extra money to shop. Both factors impact sale .
Market Objective Company G will be able to better define the marketing strategies by clearly identifying a marketing objective for each element of the market mix (product, price, Product Objective Launching 8-1 Cooking Pro to the market by April-2014, introduce its features and benefits to consumers, and sell at least 45000 sets in every quarter. Price Objective increase net income by 4% with 18 months. Place Objective Establishing at least 100 new outlets and sell Cooking Pro online within 1 year. Increasing revenue by 10% within 2 years. Promotion Objective Increase product awareness among target market by 10% in 1 year.
Marketing Strategies A marketing strategy includes marketing topics like product development, pricing approach, place and promotion. Clearly identify each strategies to show how business firm achieves its goals. Produce Strategies Offer 10 years product warranty. Offer in compact size. Adding a logo called inform Private Chef" on the product. Price Strategies Accept Visa, Master Card, And American Express. Special offer buy one get one 50% off. Interest free for 5 installment payments. Place Strategies Direct sell Cooking Pro in Amazon. Mom. Open outlets in malls in every state. Select shipping carrier which offers lowest shipping rate.
Promotion Strategies Demonstrate 8-1 Cooking Pro in Walter, offer free foods cooked by Cooking Pro to shoppers. Advertise Cooking Pro on Faceable. Com and Youth. Com. Advertise Cooking Pro in Fine Cooking magazine. Target market for Company G is people age 35 through 50. These consumers represent a demographic group of full time working people who will prepare meals for family frequently. Cooking Pro can accurately simulate the professional chefs' cooking skills. Adding logo Your Private Chef" on the product, sending message to consumers that they can enjoy restaurant quality foods without paying restaurant's price. 0 years warranty will increase consumers' confidence in the quality of our products. Compact size design saves a lot of space. Those features and benefits attract consumers to purchase Cooking Pro. It definitely helps Company G to achieve product objective. Cooking Pro's selling price is more than 100 dollars. Company G accepts all kinds of credit card payment, offer buy one get one 50% off, and Interest free for 5 installment payments method. Consumers can afford to buy. It leads to world's largest online retailer. There are a plenty of shoppers shop at Amazon. Com. Selling cost at Amazon is low.
This strategy can increase net income. Everyday thousands of people go to mall. Selling Cooking Pro in the mall definitely increase sale. Shipping cost is one of the consideration factors for consumers, list low shipping price always attracts more consumers to buy it. Those 3 strategies helps increasing sale, so Company G can achieve place objects. Our target market is people who love to cook, those people always looking for receipts in Cooking gazing and shop at grocery ; therefore, advising Cooking Pro in Fine Cooking Magazine and demonstrate it in Walter can increase awareness amount our target market.