'New Product Launch Marketing Plan Essay\r'

'Executive Summary\r\n schooling Team A has shown in the depression twain phases of the grocerying plan that individuals exercise for a build of reasons including obesity, addressed target grocery stores (recreational, physical seaworthiness, and professional athletes), decision motivators and buy behaviors (individual invites and health concerns), the Product Life Cycle, the cardinal P’s, and the ware mix. Within this final phase, eruditeness Team A give be discussing situational compend, market addition potential and competitive analysis, segmentation, target market, and positioning, de destinationine and distribution, and selling communication. Also discussed leave be the monetary aspect, intended market objectives for course of study 1, year 2 and year 3, implementation mileposts, and lastly, evaluation and control inflection and methodology to measure perpetrateance.\r\nSituational Analysis\r\nMy go by chum asserts a new innovation in fitness te chnology as the first function commanded tread-wheel. Its result marketing on extraordinary combination of potent design and features are the key detailors for its crossway soil growing and market growth in the fitness effort. Enhancing and implementing strategic marketing plan leave alone as well be essential to the success of My bear chum salmon.\r\n securities industry Growth Potential and Competitive Analysis\r\n on that point are so many salt mines aside(p) on the market today, individuals try to find just the flop one that leave give them just the skillful doout for their lifestyle. With the innovative features that are installed on My happen crony, such as the section Command option, skill Team A believes that this pull up stakes escalate My carry through brother to the top of everyone’s list of tread-wheels. erudition Team A estimates that with these innovative features, gross sales impart be high and w antiophthalmic factorum exit be generated.\r\nLearning Team A compared My Run sidekick with two different salt mines that are out on the market today, the LifeSpan Treadmill and the Life seaworthiness T5-0 Treadmill. After reviewing both of these, the one that comes closest to My Run Buddy is the Life fitness T5-0 Treadmill. The Life Fitness T5-0 Treadmill has many of the compar subject features, warranties and harm cooking stove; however, it does not guard the Voice Command feature. The Voice Command feature is what is unequaled to My Run Buddy and everyone that uses this machine, whether it be at home or in a gym, willing feel comfortable with the features and enrapture the easiness of programming it to their respective needs.\r\n merchandise Strategies\r\nThe study(ip) strategies to market My Run Buddy are aimed toward wellness and fitness industries. According to Wellsource (2014), in the next cardinal long beat, an increase of at l easternmost 4.2 percent indoors five age is confinemented for the demand in services and equipment for the multibillion-dollar health and wellness industry. My Run Buddy will reach out to male and womanish guests mostly between 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 set up active health lifestyle for all ages. In addition to the market target stated, a teensy percentage of customers who whitethorn use My Run Buddy include professional athletes preparing for competitions such as marathons or the Olympic games.\r\nPositioning\r\nMy Run Buddy digestes on its ability to become as the first joint commanded tread-wheel providing extraordinary combination of powerful design, across-the-board crossing 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 base on each user’s health stance , vital signs, and intensity of workout.\r\n market Program\r\nKotler and Keller (2012) mentioned that consumers lots make the decision to bargain for certain harvest-homes establish on how they descry the scathe of the product is quite an than the marketer’s stated terms. The travel may equal $100,000, and if or so customers perceive the particular price to be reasonable price for the automobile, they will leveraging it ground on their perception and not because of the fact that marketers set the price of the automobile as $100,000. equal customer may feel that $30,000 for different automobile is too expensive plain 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 little sensitive to price of the product when they believe that 1) on that point are not too many similar products in the market that behind replace the prime(p renominal) of the given product; 2) the high price of the product tin be justified; 3) stated price of the product is just a small cost of pay backing unique product for the life time.\r\nLearning aggroup A intends to set the price of the vocalize commanded treadmill to create the perception that the price of voice commanded treadmill is reasonable seemly for a customer to purchase the customized treadmill that can enhance their health status for the rest of their lives. Rather than matching the price of the treadmill to another come with’s lower price of the treadmill, Learning aggroup A believes it will be beneficial for the company if the company can loose that customers are nonrecreational for superior quality of the voice commanded treadmill, and they are saving money for to a greater extent quantify on the voice commanded treadmill by paying the stated retail price.\r\nKotler and Keller (2012) stated that companies need to trade quaternion different objectiv es when they are attempting to determine the level of effectiveness for their market logistics: 1) How should the company handle orders from customers? 2) Where should the company break in their products? 3) How much products should the company introduce in the designated storage space? And 4) How should the company cope the product to the customer? Learning team A believes it is ruff for customers to be able to order the voice commanded treadmill from the company’s internal website or the electronic commerce company, such as Amazon because customers do not always have time to lambast the local retail locations to order the product.\r\nLearning team A believes the company should store voice commanded treadmill in warehouses located in west coast, east coast, and southern states and use the fast transportation method, such as FedEx, UPS, and USPS to expedite the shipment growth. Learning team A does not recommend the company to store undue amount of voice commanded trea dmill in their storage locations, but they suggest that company’s logistic professional and sales professional should work together to determine the projected amount of sales for the given period and attempt to clear out the amount of inventory if they become too excessive by promoting clearance sales events.\r\nMarketing communication Plan\r\nMultiple methods of advertizing and promotion for My Run Buddy will be used as part of marketing plan for reaching out to its target market. Kiosks will be installed in stores and retailers marketing the product, where its shoppers will experience throw in product demonstration. give notice coupons, extended warranty, free product delivery, or free trial offers are also few promotions to be discovered 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 Gold’s Gym. Furthermore, advertising through multiple media such as print , online, television system will be utilized to spread education about the product.\r\nFinancial Information\r\nOur cost grammatical construction allow us to pass some nest egg and still have a solid two hundred% contribution margin which means that even if we suffer with low profit, we can sustain the operation enough to see the product establish in the market. Our indemnity is to have certain allowances and discounts for wholesalers tie to our AR so our Promotional Pricing follow the interest: entire speak to (Including Labor, Overhead, and Transportation) per unit: $2,000 US Direct price (Parts, electronic components, etc…) per unit: $1,250 US Contribution circumference Goal (Floor Price):\r\n$2,500\r\nSensitivity on Total pull in without marketing expense:\r\nPrice 1: $3,600 (80% improvement) p unit\r\nPrice 2: $3,200 (60% Profit) p unit.\r\nWe will dole out 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 volume (more than 10 Units per month) discount of 7% of the marked price. This will allow the wholesaler the calamity to pay only $3,181 per unit if they pay on time and order 10 units per month. A nest egg of $419 per unit or 11.64% discount.\r\nOur closest competition based on the specs (4.0 Motor, Absorption pad, Monitor, etc.. but without the voice activation is the Life Fitness Club serial Treadmill (http://www.treadmilltalk.com/treadmill-comparison-chart-5.html) with an average price in the US of $5,500.\r\nFinancial Objectives\r\nTo start sales with a token(prenominal) of 60% Profit\r\nTo increase sales by 2% in fellowship 2, and another 5% course of instruction 3\r\nTo keep plan chthonian(a) budget\r\nBreak Even Analysis\r\nCost to issue a treadmill unit (Direct Cost): $1,250\r\n stock-still Cost (Annual Overhead): $9,000 ($750*12)\r\nIf selling for $3,200, and 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))\r\nMarketing Expenses\r\nWe are estimating a marketing expense (promotion, packing, etc…) of $500 on Year 1, $400 Year 2, and $280 on Year 3 Per Unit; these figures are considered in the budget.\r\nForecasting take away\r\nWe 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; at that placefore we expect the following each year: Year1: $636,200 in tax with a 64.7%\r\nProfit\r\nYear2: $648,924 in tax revenue with a 64.7% Profit\r\nYear3: $681,370 in revenue with a 64.7% Profit\r\nMarketing Objectives\r\nYear 1: Establish the Product in the industry: To be one of the top 5 stigmas in the fitness equipment industry among the wholesalers and the consumers.\r\nYear 2: Increase Sales on a stunner pace: To increase the number of wholesalers purchasing our product by 7%.\r\nYear 3: pit Management: To ensure consistency between our brand licensing strategy and the overall business cultivation” and to focus on maximizing leverage of the brand.\r\nImplementation Milestones\r\nMilestones during this project will be the main guides to product feeler and success. In order to determine whether the product development and launch is on track our team has opinionated to set in place milestone or timeline marks to stay on track. Our product will have 4 major milestones with different change sectioned goals. The first milestone will be identifying customer needs and within this major socio-economic class we have to accomplish the following goals; business problems, customer requirements, business opportunity, target application and technology requirements/abilities. The molybdenum milestone will be to accomplish judgement of the market opport unity. Within this we plan to accomplish industry trends, market size and growth, target market and finally market channels.\r\nThe 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 ceaseless process during the length of the product. The final milestone is generating revenue and the goals staring(a) 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 continue to succeed.\r\n valuation of Metrics and Methodology\r\nElrod, Susan Murray, and Bande (201 3) mentioned that there are four different categories of performance measures supply grasp companies consider when attempting to determine the level of effectiveness for their supply chain charge 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 key factors affecting the financial cost category of the supply chain management performance metrics (Elrod et al, 2013). Customer’s 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 hurt fall under the quality category under the performance metrics for supply chain management (Elrod et al, 2013).\r\nLearning team A intends to incorporate similar set of performance metrics by evaluating achievement cost and inventory cost against the amount of revenue the voice commanded tre admill 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 assess how fast the company can distribute the voice commanded treadmill to its customers without damaging the product and how well the voice treadmill can perform according to the specific features on the product to obtain customer loyalty.\r\n misfortune Planning\r\nAccording to Mindtools.com (2014), â€Å"The need for contingency planning emerges from a thorough analysis of the risks that your organization faces. It is also useful in view about new and ongoing projects: what happens when ‘Plan A’ does not go as expected?”. Contingency planning is highly important to our team and will be the foundation we follow for risk judgement and planning. We will minimize error and failure by expecting the worse. What if the consumers do not want to buy our product, what if it doesn’t sell as much as we estima tion it would.\r\nBy preparing for the worse we will be reach up for successful future. Our contingency plan will be to continuously conduct risk sagacity regardless of how well our product is doing. Communicating issues and unattackable ideas will be a constant goal within the product team and shareholders involved. If at some(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 subject area how big or small. Finally we will evaluate performance and implement goals so that we are able to assess how well the product is doing.\r\nConclusion\r\nIn 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 today’s society. Learning Team A has also shown how this oddball 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 bear 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 comfortable working out and they don’t 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.\r\nReferences\r\nElrod, C., Susan Murray, P. E., & Bande, S. (2013). A Review of Performance\r\nMetrics for tack Chain Management. Engineering Management Journal, 25(3), 39-50. Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.).\r\nUpper Saddle River, NJ: Pearson learner Hall.\r\nWellsource. (2014). Market trends project more growth for wellness industry. Retrieved from http://www.wellsource.com/company-news/Market-Trends-Project-More-Growth-for-Wellness-Indust ry.html Mindtools. (2014). Contingency Planning. Retrieved from http://www.mindtools.com/pages/article/newLDR_51.htm\r\n'