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Solar Market AnalysisPresented byCSUMB Presented to Carol DavisBusiness Marketing BUS306Cal State University Monterey BayTable of Contents?Executive Summary4Situation Analysis6Market Summary6Geographic7Demographics:8Age Segmentation9Life-Cycle Stage Segmentation9Income Segmentation10Behavior Factors/Psychological11Market Needs/ Market Trends12Market Growth13SWOT Analysis:14Strengths14Weaknesses14Opportunities15Threats15Competition15Product Offerings18Keys to Success19Critical Issues19Marketing Strategy20Value Proposition20Mission20Marketing Objectives20Financial Objectives21Target Markets21Positioning21Strategies22Marketing Mix:22Pricing22Distribution22Marketing Communications23Marketing Research24Financials:25Break-even Analysis25Sales Forecast Analysis25Marketing Cost Breakdown26Controls27Implementation28Marketing Organization28Contingency Planning29References30List of FiguresFigure 1: Bar Graph (How Likely to Buy This Product)7Figure 2: Bar Graph (What is Your Age?)8Figure 3: Bar Graph (Family Size)9Figure 4: Bar Graph (Income Levels)10Figure 5: Bar Graph (Activities for Using This Product)11Figure 6: Line Graph Renewable Electricity by Type13Figure 7: Bar Graph New Generation of Fuel14Figure 8: Four Ps of Goal Zero, Solar Kit16Figure 9: Four P’s of Wagan Tech, Solar E-Power Panel Cube17Figure 10: Four P’s of Bushnell, Solar Wrap 400 Solar Power Charger18Figure 11: Line Chart Break-Even Analysis25Figure 12: Table Sales Forecast Analysis26Figure 13: Table Total Fixed and Variable Marketing Costs27Executive SummaryToday more people have introduced devices such as smartphones and tablets into their everyday lives. Despite advancing technology a problem with most electronic devices is keeping them charged, especially while outdoors far from any electrical outlets. The outdoor recreational industry is one of the largest in the United States and millions and we believe consumers would be interested in a product that would allow people to conveniently charge devices even while outdoors far away from any electrical outlets. To address this problem Solar Coleman looks to combine one of the most common pieces of equipment brought along to outdoor events, the cooler, and combining it with innovative solar charging technology to keep any electronic devices charged.The product is Solar Coleman a portable cooler with solar panels that charges small devices utilizing the sun’s rays. The solar panels will be durable and have a weather protectant coating. The cooler will have a retractable handle and rugged wheels allowing users to easily transport the cooler among different types of terrains. It will have a universal serial bus (USB) and 12-volt DC outlet allowing the user to be able to charge different devices. It will have a lifetime warranty creating peace of mind among the consumers. ???????????? The main target market consists of people with active lifestyles. After conducting an online survey we found that the ages range from 18-54 year olds. We will target middle class, and above that have disposable income. We will utilize online marketing resources to inform and educate consumers of a new way to charging small devices while in the outdoors environment.?We plan to position Solar Coleman into a position where everyone who participates in outdoor activities such as camping or tailgating would want to own a Solar Coleman cooler over a regular cooler. To do this we intend to make the Solar Coleman as affordable even at its introduction into the market. This will make the price both appealing and hard for potential competitors hard to match Solar Coleman’s combination of price and quality. In addition with Coleman’s already established distribution system through retailers such as Costco, we will make it easy for consumers to find and purchase the Solar Coleman.Solar Coleman does not have competitors that currently sell a comparable alternative however; there are companies which manufacture portable devices that gather the sun’s energy to charge mobile devices. Solar Coleman is unique in that it offers more features than are being offered by its competitors.? It provides a place to keep things cool as well as keep devices charged.??????????? The cooler will be sold for $149.99, and offer a limited lifetime warranty.? Our initial research estimates sales of 47,304 units the first quarter, and approaching the breakeven point at?189,215 units after the first year. We project a 15% increase in sales from customer demand and increase in technology availability.??????????? Solar Coleman will be sold directly to customers through the company’s website, catalogs and telemarketing. Most importantly, they will be available on a global basis through Costco Wholesale and its stores worldwide.?Advertising, online marketing, public relations, sales promotions, and sporting events will receive most marketing efforts.?The marketing communication will include a combination of indirect, direct and personal selling to the targeted consumer.??????????? Providing consumers with an environmentally friendly, mobile charging solution is a market need that has not been addressed. The Solar Coleman cooler will conveniently supply portable power to everyone who loves the outdoors and already use a cooler.Situation AnalysisSolar-Coleman, an ice chest cooler outfitted with a solar panel, will be part of the outdoor and recreational industry under the Coleman Company. Coleman Company was founded in the early 1900s, over 100 years in the industry, a global company with offices worldwide; they practice operational excellence (linkedin, 2014). Solar-Coleman will provide a practical solution for people in need of charging small electronic devices while outdoors. Consumers will be able to use the cooler while going camping, fishing, boating, tailgating, going to the beach, and any activity that takes place outdoors. Users of a wide range of electrical devices like mp3 players, phones, GPS or tablets, will be able to keep their devices charged. Charging will allow users to stay connected with their devices for many purposes like communications, taking pictures, listening to music, taking notes, checking in with social media, or simply passing time. The Solar-Coleman is a cooler with a built-in solar panel on the top part of the cooler. It will have a small converter that transforms the energy from solar to usable energy, via a USB port and a 12-volt DC output where users can plug in small devices that need to be charged.Market Summary In the United States alone, more than 140 million Americans participate in outdoor recreational activities, an industry worth more than $646 billion (ASLA, 2014). More money is spent on outdoor recreation in the United States than in other large industries such as Household Utilities ($309 billion), Motor Vehicles/Parts ($340 billion), and Gasoline/Other Fuels ($354 billion) (ASLA, 2014). Outdoor recreation is often an escape from our interconnected world. For many Americans use of technology, another growing industry, is quickly becoming an important part of life. Our social dependence makes it harder and harder to leave behind technology. Often while people are enjoying outdoor activities such as camping, sporting events, boating and hiking they are in remote areas far from any electrical outlets. This presents a problem to keep their devices charged and ready to use. To solve this problem we compared various different products that are often brought along on outdoor activity and decided ultimately that a cooler is the best candidate to modify with solar panels. These panels would charge electronic devices through USB ports used by most portable device manufacturers. From a survey conducted by our group, this product concept has received positive feedback by the majority of respondents. People surveyed said they would be moderately likely to extremely likely to buy this product if it were available in the market today. This market analysis concludes there is preliminary high demand for the solutions our concept can offer.GeographicBy partnering with a global leader in camping accessories, Coleman Company, Inc., the intended geographic segmentation, rather than being divided, would be inclusive worldwide. Coleman’s existing products are used throughout the world by outdoorsmen and people with active lifestyles. According to Coleman Company, Inc.:Our products have journeyed deep in the Sahara desert, and been along on treks all the way to the South Pole. Coleman lanterns guided aircraft to safe landings in the Andes Mountains in South America in the 1920s, and helped climbers reach the top of Mt. Everest”(Coleman, 2014). Figure SEQ Figure \* ARABIC 1 Bar Graph (How Likely to Buy This Product180975429260In effect, globalization is a key component to Coleman’s continued success which promises to provide access to the masses for Solar-Coleman. Our team recently conducted a simple random probability sample in which the product concept survey asked participants: if the Solar-Coleman was available today, how likely would you be to buy this product? Thirty-seven percent of respondents were very likely, and 31.25% were moderately likely to purchase the Solar-Coleman. This positive data gives a valuable glimpse into consumer market research.DemographicsAge Segmentation-85725575945In the product concept survey, some interesting results were found. People in the age group 18-24 accounted for 31.25%, the highest percent of respondents. This was interesting because our initial estimate figured people in a higher age group would be the most interested in the Solar-Coleman. It was assumed adults with children would be the most likely consumers. The data indicated the 35-44 age demographic was second highest. This survey suggests the younger age group is the most appropriate group to position marketing efforts.Figure SEQ Figure \* ARABIC 2 Bar Graph (What is Your Age?)The “empty-nesters” group, ages ranging from 45-54, was also an important target segment mainly because this segment continues to live active lifestyles. The 25-34 age group resulted in a smaller sample size partially because few of the respondents were fellow students and not indicative of this age groups overall outdoor interest and active lifestyles. Further targeted research is needed to more accurately assess the tendency to purchase the Solar Coleman. The last three age groups which start at age 55 would also be an included segment. These age groups are not considered attractive market segments due to the level of inactivity associated with them. According to annual data from America’s Health rankings, people in age groups from 45-65+ account for over 56.20% of physical inactivity in the U.S. population (America’s Health, 2014). However, Solar-Coleman would see this target demographic for product positioning because of the high-level income this age group is typically associated with and not so much as having to do with active lifestyles.Life-Cycle Stage SegmentationFigure SEQ Figure \* ARABIC 3 Bar Graph (Family Size)-666751908175Most other consumer products cater to specific life-cycle segments. From our in-class practicum presentation, we illustrated how Beats headphones are marketed to young, hip, and sound-quality conscious consumers. Vehicles typically have a specific target market as well. Vans are targeted to families with children. Luxury vehicles are targeted to the upper-income consumer. Sports cars are targeted to the younger, male consumer. Solar-Coleman seems to be a good fit for all life-cycle stages. The “families with children” segment accounts for 65.63% of respondents. This stage in peoples’ lives indicates more family outdoor activities are taking place as opposed to “single” and “married-no children” segments which account for 34.38% of respondents. The “single” and “married” family sizes seem to have different types of outdoor activities which also find benefits in using the Solar-Coleman. This initial data illustrates the Solar-Coleman concept has proven to have a broad life-cycle segmentation which is relatively even throughout.Income SegmentationFigure SEQ Figure \* ARABIC 4 Bar Graph (Income Levels)24479251209675Income is a major determining factor for Solar-Coleman. Marketing efforts would be tailored to the consumer with expendable income. The product concept survey suggests the income level from $0 - $24,999 accounts for 23.33% of the market and $25,000 - $49,999 is 33.33% of the income segment. These two segments combined, reflect over half the population. According to Ben Casselman and his article, When Living Wage Is Minimum Wage, he suggests that most of the low wage earners have resources to help them lead active lifestyles. He writes that “[a] substantial — and increasing — number of young adults are living with their parents”(Casselman, 2014). These lower income earners are prime candidates because often times, the wages they earn are mainly considered disposable income since the regular bills and cost of living is paid for by the parents. An example of this are my children, ages twenty-two and twenty-one. My 21 year old has no job yet drives a Ford Mustang all over town and even buys friends gifts with my money. She has a small cell-phone repair business, based out of my retail store location, and typically makes less than fifty dollars a week while going through the Certified Nursing Assistance program in Salinas. My son works part-time for McDonald’s and he also drives a Nissan truck and hangs out with all his friends. He makes less than $700.00 a month but parties like a rock-star. Both of my children put together are way below the poverty line but my income, regretfully, gives them freedoms that I cannot, and don’t want, to spend money on. With over 71.2 million memberships in 10 different countries, our retail partner, Costco Wholesale, is a strong channel that will supply consumers with our product. The affluent consumers with incomes of $50,000 and above would also be part of marketing efforts in part due to Costco’s existing customer base. According to a recent article titled, Tightening the Beltway, the Elite Shop Costco, in the New York Times by Richard Perle, he writes, ”to its benefit, Costco has carefully fashioned an upscale-downscale image, and their stores do better in high-end locations” (Perle, 2007). This comment was in reference to a Costco store which was strategically located near the Pentagon in the Washington area in Arlington, Virginia. This store is frequented by and attracts government officials, ambassadors, and military personnel (Perle, 2007). All are part of the higher income population.Behavior Factors/Psychological-4000581280Figure SEQ Figure \* ARABIC 5 Bar Graph (Activities for Using This Product)Behavior factors which are essential to product success would have to be broad by definition. Solar-Coleman would be targeted to the active-lifestyle consumer. This consumer is typically outdoors and enjoys a wide range of activities. Coleman has successfully focused its marketing efforts to include outdoor activities like “hiking, camping, fishing, hunting, boating, swimming, four-wheeling, relaxing, [and] tailgating” (Coleman, 2014). The Solar-Coleman would fit right into this company’s existing behavioral marketing campaigns. This survey suggests camping, tailgating, and sporting events would be the most common uses for the concept. Fishing, boating/ skiing, and job site use are strong markets which should be included as well.Market NeedsBill McKibben is a Harvard University graduate and an American Environmentalist who has written a broad range of global warming books. He once said, “There is an urgent need to stop subsidizing fossil fuel industry, dramatically reduce wasted energy, and significantly shift our power supplies from oil, coal, and natural gas to wind, solar, geothermal, and other renewable energy sources. (Brainy Quote)” The situation of the marketplace gap is described in some detail in which consumers should change their lifestyle from using electricity to using solar power. The main point is that Solar-Coleman would play a very strong significant factor in the solar innovation field. The specific benefit this product will have in this industry is to provide a service for a full variety of customers who are looking for that strong wild actor of portability this product provides. Gaining this benefit would decrease the necessity of electricity. The Solar-Coleman provides for their customers who are looking for a long-term effect of change that will bring them a good beneficial method of solving the trending gap in this marketplace, changing a customer’s life with their product will give Coleman a chance to innovate their production line.Market TrendsThe Solar-Coleman is heading towards the 21st century where the variable is technology. The web article “Solar Power Is the ” gives the public a chance to view this site as an informative example to understand the idea of solar power. The article “Solar Power is the ” states:The simplest examples of solar energy use can be found in basic tasks, such as using the sun to dry clothes or food. These days, some homeowners turn to solar home heating or solar water heating to power their homes. Things like the clothes washer & dryer, heating hot water for the bath, powering the oven, and of course lighting in the home, can all be run with solar power. Even outdoor living spaces can be enhanced through the use of solar garden lights!”(Solar Power is the ) Outside influences such as the sun improve the day-to-day lives of individuals who rely on solar power show that there is a trend. The influence that this new product will bring into the market is a fresh new style of living; Solar-Coleman represents a new direction of growth. Moving forward in this industry has influenced a new market for consumers who want to be outdoors with the chance to bring their commodities to make them feel more comfortable.Marketing Growth of Solar-ColemanThe Solar-Coleman line has the ability to grow through the market in which they gain the values and services they provide to their customers. These measurements change over time and the income output will increase the revenue of this company. On May 7, 2014, a web article was released called the Annual Energy Outlook 2014, stated that, “Solar energy is the fastest-growing source of renewable generation, increasing by 7.5%/year from 2012 to 2040, almost exclusively as a result of increased photovoltaic capacity in both the electric power (central-station) and end-use (customer-sited) sectors.”(Annual Energy Outlook, 2014). Solar power is not only the support of growing markets, but also Coleman has the necessity to open new doors and increases the generation of the century more than 7.5% from 2012. The projections of solar power have given the chance for success in this current market. Subsequently, another web article named “GreentechSolar stated that, “Solar was the second-largest source of new electricity generating capacity in the U.S., exceeded only by natural gas. Additionally, the cost to install solar fell throughout the year, ending the year 15 percent below the mark set at the end of 2012.”(GreentechSolar, March2014) Solar-Coleman will soar through the market gains it will produce. This company’s production Solar-Coleman will consume the product market as a strong relation of market growth, but also a chance to increase natural resources.Figure 7: Bar Chart New Generation of FuelSWOT AnalysisStrengthsBrand awareness and brand loyalty are strengths for Solar-Coleman. Coleman Company, Inc. has been a trusted brand since 1905, when W.C. Coleman started the company (Coleman, 2014). Coleman continues to capture global market share with the emerging technologies and brands which include “Sevylor? floats and towables, Stearns? life vests, Mad Dog Gear? ATV accessories, Helium? sports vests and AeroBed? airbeds” (Coleman, 2014). Additionally, utilizing Costco as a retail partner, Solar-Colman is sure to capture a vast market share of consumers which align with target segments presented earlier. Distribution would also be advantageous with Costco’s existing warehouses and store locations. Weaknesses One of the weaknesses the Solar Coleman has is the reliance on external suppliers for the various components needed. Outsourcing allows cost or research and development to be greatly reduced, maximizing profits, but also potentially exposes a supply shortage. After initial sales figures, and overall market evaluation, Coleman would be encouraged to consider further research and solar panel manufacturing. Opportunities According to a detailed press release from the Bureau of Economic Analysis (BEA), recent State Personal Income has been on the rise. The data concludes: Quarterly data: State personal income growth accelerated to 1.5 percent in the second quarter of 2014 from 1.2 percent in the first quarter. Personal income growth ranged from 2.7 percent in North Dakota and Nebraska to 1.1 percent in New York and Alaska, with growth accelerating in 36 states (BEA, 2014). Due to the growing economy, we expect consumers will continue to seek outdoor and leisure activities which will prove to fulfill product demand. Threats This product is dependent on the availability of solar panels. If solar panel technology changes, and is determined to conflict with the cooler use and environment, it could have a negative impact on production and safety. The material used for the solar panels is also a threat due to possible availability shortages or price fluctuations. Additionally, outdoor activities, sporting events, and tailgating thrive during a flourishing economy but also decrease during an economic downturn. An economic downturn would negatively affect petitionThe Solar-Coleman ice chest cooler is unique in the sense that there is not a similar product on the market yet. There are however, competitors that offer solar power to charge electronic gadgets. The Solar-Coleman would have a few major competitors currently in the market including: Goal Zero Guide, Solar kit; Wagan Tech, solar e-power panel cube; Bushnell, Solar Wrap power charger which provides a similar solution for consumers in need of solar charging. These competitors offer a solution to the problem of charging devices while outdoors or on the go. Goal Zero and Bushnell offers compact on the go solutions for charging small devices. Wagen Tech offers a bigger product that generates more electricity and allows users to power bigger items. -371475-163830Figure 8 Four Ps of Goal Zero, Solar Kit16052804445Goal Zero launched in June, 2009 and has set out to empower people all over the world (GoalZero, 2014). They create portable solar power systems, ranging from solar panels, portable power packs, generators, to chargers and accessories (Crunchbase, 2014).?The Goal Zero solar panel kit is a small lightweight and compact panel allowing portability. This provides a feature of being able to plug in devices using USB while having the capability to charge batteries. Additionally, this product has the capability of charging two items at the same time. Consumers have complained that the iPhone, iPad, and other apple devices are not able to use this accessory to charge devices (Costco, 2014). “The smart-phone industry includes fifty six percent of the U.S. market. Apple's iPhone accounts for twenty-five percent of the share” (appleinsider, 2014). Goal Zero is losing out on twenty-five percent of potential customers.Figure 9 Four Ps of Wagan Tech, Solar E-Power Pane Cube-427990113665Wagan Tech has five portable solar panels; the system is large and effective. However, it is a bulky box that collects and converts the sun’s solar power into usable energy. It is able to charge larger items including charging a car battery, laptops, . Additionally, it will charge a power impact drill for five hours, and power up a television, (Home depot, 2014). The Solar E-Power Panel Cube offers a limited manufacturer warranty of two years (Home depot, 2014). As a consumer, paying close to $1000 for a gadget, the expectation is that it must be a durable product, yet the manufacturer fails to back its product after two years. The customer must register the product within 30 days in order to acquire the manufacturer warranty (Home depot, 2014).Figure 10 Four Ps of Bushnell, SolarWrap 400 Solar Power ChargerBushnell, Solar Wrap 400 Solar power charger, has a flexible solar panel that unrolls when the user requires collecting solar energy; once done it rolls back up. It comes in a durable hard case and it is small and compact; this feature makes it ideal for charging smaller electronic devices like mp3 players, cameras, and phones (REI, 2014). According to customer reviews they were dissatisfied with the charging rate and that the battery capability was low (REI, 2014).Product OfferingSolar-Coleman will provide a solution to charge devices as well address consumer needs like holding items such as beverages, food, or whatever the consumer decides to keep cool. It will have rugged wheels and a retractable handle allowing users to pull the cooler in a range of terrains and take it to whichever destination they desire. It will generate enough power to charge small devices. Users will have the freedom of being mobile and being able to charge their devices while being outdoors away from electrical power outlets.The Solar-Coleman will offer a compact durable weather-resistant solar panel coating on the lid of the cooler. The solar panel will “consists of the silicon semiconductor surrounded by protective material in a metal frame” that will gather energy from the sun’s rays (madehow, 2014). The lid will have two cup holders allowing the user to have an area where beverages can be placed. The solar panel will have a life-time warranty; it will be built to last, creating peace of mind for the consumer. The cooler assembly will have a limited lifetime warranty as well. A universal serial bus (USB) and a 12-volt gear outlet will allow users to connect any device using a USB cable. It has a portable rechargeable battery pack allowing the user to save the power generated by the solar energy allowing customers to use during the day or at night. The primary building material which will be used for the cooler will be polyethylene. It is the same material that Coleman currently uses for most of its coolers. Solar-Coleman will create peace of mind knowing there is a power source that can power their devices while enjoying the outdoors.Keys to SuccessIn order to capture a large amount of market share in the cooler business, we decided to partner up with the Coleman brand because they have a long standing reputation with quality coolers. Consumers instantly recognize the Coleman brand and are more willing to try out a cooler that is capable of recharging electronics as opposed if the same exact product was manufactured by another company with less of a connection to coolers. Along with the Coleman brand comes its established distribution network. Coleman coolers are carried by every retailer that carries coolers, such as some of the United States’ largest retailer such as Costco and Walmart. With these well-established retail partnerships, the Solar-Coleman will reach a very broad market segment and large percentage of potential customers. The biggest key to success for the Solar-Coleman will be that it will be the first of its kind out on the market. This will be a brand new product that will appeal to anyone who does any kind of outdoor recreational activity and Coleman will be the only company making it.Critical IssuesAs with most new products there are many issues that could potentially stop the Solar-Coleman from succeeding. The first being that the product is heavily supplier dependent as we are purchasing the solar panel’s components from a third party company and since they control the price of the parts. Not having the right supplier could affect our production, profitability, reliability and retail price.Secondly, since this is a new product, the market will be wide open for competitors to start making their own version of this product. This will potentially reduce some of the product demand. Most new products are open to imitators as they try to cash in on the wave of success experienced by the product. It is noted that having a product copied can be financially devastating to the one who invented it (HG, 2014).One last issue for the product could be that the economy fails and people would not have as much income to spend freely on products used for recreational purposes. The outdoor recreational industry may be one of the largest in the United States but if money begins to become an issue it will be one of the first areas consumer cut spending on. Spending in the United States is still 3.5 percent below the pre-recession peak (Coy, 2014).Marketing StrategyValue PropositionAs we all become more and more connected every day, people are carrying their smartphones and tablets everywhere they go. In the United States 58% of American adults have a smartphone and 42% of American adults own a tablet computer (Pew Research, 2014). That is a large segment of the U.S. population that is using these devices to and when they participate in outdoor recreational activities, which accounts for 49.4 percent of Americans population did in 2012., tThey often find themselves in places devoidlacking of any methods of allowing them keeping their devices charged (Outdoor Foundation, 2013). Solar Coleman seeks to address this problem by taking one of the most common pieces of equipment used in outdoor recreation, a cooler, and equipping them with solar panel charging components for the convenience of the consumer.MissionSolar Coleman seeks to provide outdoor enthusiasts everywhere a high quality cooler with the innovative added convenience of solar powered charging technology to allowing customers to keep their important electronic devices charged in locations that usually offer limited options to charge such devices.To further simplify our mission statement to the end consumer we intend to use the slogan “Be Cool and in Charge”, which simplifies the objective of what the product is trying to deliver which is to keep things cool, and to charge electronic devices.Marketing ObjectivesWe want to introduce this brand new product to increase Coleman’s sales by creating a market for solar panel equipped coolers. Our objective is to reach every outdoor enthusiast or anyone in general that uses a cooler to keep things cold while enjoying outdoor recreation activities. As this is a brand new product we are introducing to the market we want to make sure we position our product’s advantages and value clearly across to the consumer. We also want thisThis product will to bring brand awareness to the Coleman brand. This product is something new and exciting, and will certainly catch the attention of consumers as we plan to market this product extensively through various outlets. It will put the Coleman name back in people’s heads and bring us positive press.Financial ObjectivesIn regards to the product itself we hope to have it at a very reasonable price, something that the consumer would not think is more than what it should cost. We plan on making the cost of our product as close to possible to being the lowest price of a cooler and solar panel charging technology combined meaning that the price of the cooler should be close to the price of those parts combined. As we are working closely working with Coleman we can get the price of the coolers as low as possible. As for the solar panels and charging components we hope to find a supplier that can offer us those components at the lowest price possible as well.Target MarketsSolar Coleman aims to reach anyone who uses a cooler, but for an example we want to target a certain demographic. This demographic would include middle class individuals who do like to spend a lot of free time outdoors. According to our own survey that we conducted, the age group most interested in our product would be the 18-34 age group. Also to have a specific target in mind we aim to market especially to potential customers living in places close to popular outdoor recreational hotpots, California for example has many of the United States top recreational spots ranging from popular parks such as Sequoia National Park, Lake Tahoe, and, Yosemite National Park to several major stadiums such as Levi’s Stadium and Qualcomm Stadium where tailgating is very popular. All these locations are places that you would be likely to find someone using a cooler in (Touropia, 2014).PositioningWe plan on marketing the Solar Coleman as a “more for less” product. Knowing out target demographic, we want to position our product carefully. As our goal we hope to position the Solar Coleman into a position where everyone who uses a cooler would want to have our Solar Coleman instead. We want consumers to prefer the Solar Coleman and never want to just have a regular cooler without solar panel charging technology ever again. Later down the road we should expect for competitors to arise, and offer their own solar panel equipped coolers. The “more for less” approach would help us be used in this regard by already trying to beat out the competition price-wise even before they come out.StrategiesThe sStrategies of Solar Coleman will be to focus on the ease of charging devices while out and about using solar energy. The first step is to reach out to our target market, active 18-54 year olds, with mid-to-high and disposable incomes interested in trying new and innovated products. Emphasizing the more for less value proposition, all the benefits that the Solar Coleman gives consumers at a low price, compared to other manufactures that offer solutions to charging devices. This will appeal to this group because it offers a great life-time warranty, provides a solution to charging devices while in the outdoors, creates a secure and ease of mind to the consumer.Marketing MixPricingSolar Coleman will be priced at 149.99, when determining the price we considered two factors. We looked at the average cost that Coleman charges for their coolers it is $ 49.99(Coleman, 2014). Then we looked at what, Goal Zero, is charging for their solar portable charging solution and their price ranged from $ 99.95-119.99. At the price of $149.99 it will be very attractive to our targeted market using the value proposition of more for less really pushing all the benefits that the Solar Coleman offers.DistributionThe distribution channels will include using a conventional marketing channel, “one or more independent producers, wholesalers and retailers, each a separate business seeking to maximize its own profits” (Kotler & Armstrong, 2012, p.345). We will have our product available directly through manufacturer Coleman (business to consumer), and also available in stores (business to business) thus distributing through multiple channels. Solar Coleman will obtain raw material and parts needed to manufacturer the cooler from suppliers as well as manufacturers. Solar Colman will be available through Coleman’s website, catalogs, and a telephone so that consumers will be able to directly obtain the product from straight from the manufacturer. We will partner up with Costco as a reseller of our product initially. Costco was chosen as the store to distribute our product because they are well established, trusted by consumers, they have the customers that have mid-to-high and disposable incomes. According to Costco’s company profile, there are 663 warehouses and the following store locations worldwide: Areas of operation:468 locations in 43 U.S. States & Puerto Rico;88 locations in nine Canadian provinces;26 locations in the United Kingdom;10 locations in Taiwan;11 locations in Korea;20 locations in Japan;6 locations in Australia;33 locations in 18 Mexican states;1 location in SpainStore Location Information courtesy of Costco Investor Relations, (2014).Marketing CommunicationsAdvertising, online marketing, public relations, sales promotion, events and experiences will be our main ways of communicating. We will inform our consumers and gain product recognition among our market. Creating an excitement regarding the new and innovated solar Coleman cooler will attract many to recognize and will lead to them trying our product.Conducting online marketing we will have a web-site, online social media, mobile marketing, e-mail, online ads and promotions. Through our website consumers will be able to provide information regarding our product as well as options to purchase the Solar Coleman. We will utilize social media, (Facebook, Instagram, Tweeter, Pinterest, Google+ and ECT.) to promote, advertising, public relations, direct marketing, viral marketing, offer sales promotions, contest, and to promote events the Solar Coleman cooler. Using social media we will share pictures and demonstrate our product works also have users share their experience with Solar Coleman cooler. Our target markets are people with an active lifestyle that have small devices that need charge, helping them stay connected with social media. Mobile marketing will focuses on-the-go consumers utilizing their mobile phones, smart phones, and tablets to engage customers and help them shop. We will utilize e-mail as a communication tool and use it as a direct marketing medium. Solar Coleman online ads will appear as consumers are browsing the internet they will appear in search-related ads.We will make a short video demonstrating how our product works and launch it through YouTube focusing on informing consumers about our product. According to Adroit Digital “68% of respondents would be more influenced by a short video than a text-based ad when seeking new product information” (AndroitDigital, 2014). Our consumers would most likely look us up on YouTube and watch a video regarding our product verses reading material on our cooler. Adroit Digital has found that the traditional television has lost popularity among the United States and YouTube is now more popular according to a survey of 2,000 people (AndroitDigital, 2014). We have a wide range of consumers therefore we would also launch a traditional commercial, make it available through YouTube as well as the television. We would build public relations using the media to promote press releases. Initially to inform our audience of new and innovated product that will be coming out into the market. Also to keep consumers informed of promotions and contest that we have going on. We will launch a sales promotion issuing a $10–off coupon, on the third year once our sells begin to decrease, and really focuses on the savings that the consumer will be getting. Among a study conducted by Dr. Paul J. Zak, Professor of Nero-economics, Claremont Graduate University, people who receive $10 coupons, were happier with their purchases, have 38 percent higher Oxytocin levels, 32 percent had calmer breathing rates, 5 percent slower heart rates, this helps show how there was a decreased in stress (Medical Post, 2014). Making the coupon limited after the third year on the market will increase sales by attracting consumers, by creating a sense of urgency and really stressing the savings.Events and experiences that Solar Coleman will also focus on will be sporting events and trade shows giving us a chance to demonstrate how our product works. To inform more customers of what our product is and gain recognition among consumers. We will make working displays to demonstrate how our product works in stores. We will appear at sporting events, concerts, festival and have a working display of our product and share how our product works and for them to be able to gain hands on experience with our product.Marketing ResearchInitially Solar Coleman began by finding a solution that addressed charging small devices while outdoors. Primary research began by conducting an online survey through survey-monkey among the general public which helped us focused on whom our targeted market would be. The survey provided useful information on demographics, age, geographic, income, activates and interests of the general public. Our research included online- and textbook-research on utilizing solar rays to conduct energy, and finding a product that would generate enough energy to charge small devices. Utilizing online research, textbook and our online survey the majority of our information was found.?????????????????For ongoing marketing research Coleman will utilize Costco Wholesale’s vast customer data base to target customers which fit our market segment. Additionally website and social media will provide vital information on customers’ interests, lifestyles, and tendencies. This information will be a guiding light for future marketing efforts. Furthermore, benefiting from Jarden Corporations vast resources, Coleman’s in-house Market Research, Promotions, and Marketing Strategies departments will focus marketing efforts on the most attractive potential consumer.FinancialsBreak-Even AnalysisThe following table is a projected break-even point, $10,153, for the cost of marketing, both fixed and variable, for the Solar Coleman. Coleman Company will break even within the first year of sales with 189,215 units sold. Figure 11: Break-Even AnalysisSales Forecast AnalysisThe Sales forecast table takes into consideration the distribution excellence of Costco Corporation and its 657 locations worldwide. For first quarter sales, calculations were made to supply all Costco locations with an introductory two month supply, or 47,304 units. Sales would be promoted by all the various advertising strategies implemented. Second quarter sales would replenish some of the sold product and increasing sales for an additional month supply of 23,652 units. For the third quarter sales figures, Costco locations would receive an additional two month supply of 47,203 units. Fourth quarter sales, along with market buzz and customer demand, would increase to a three month supply of 70,956 units. First year sales are expected to reach 189,216 units. After the first year, we expect a 15% increase due to emerging technology availability and increased customer demand. Third year sales are expected to decrease to 12%, -83185924560due to market saturation and competitive firms seeking to enter the market. Figure 12: Sales Forecast AnalysisMarketing Cost BreakdownThe following table illustrates both annual fixed and variable marketing costs associated with the Solar Coleman. Coleman Company is wholly owned by Jarden Corporation. Jarden has “over 120 brands which primarily focus on Outdoor Solutions, Branded Consumables and Consumer Solutions”(Jarden, 2013). With annual gross sales totaling $2,724.4 million, it is estimated that Coleman brand accounts for 4% of the revenue, or $108.976 million. Of this amount, it was calculated that the typical marketing budget is estimated at 20% of gross sales however, the average 20% marketing budget is spread across all the company product offerings. We chose to only allow 10% of gross sales, or $10,897,600 because it is a new and innovative product that will launch on a global scale. If the Solar Coleman was to be marketed solely in the United States, our marketing figures would have been greatly reduced. The strategic alliance with Costco allows the Solar Coleman to be sold and available worldwide.Figure 1 SEQ Figure \* ARABIC 3: Total Fixed and Variable Marketing Costs ControlsThe variables that you intend to measure to monitor your progress and eventual success and how they will be monitored should be itemized in this section. These variables need to relate to your Marketing Objectives as well as your Marketing Strategy and Marketing Mix.Solar Coleman will be keeping track of all of the customers that they talk to during events, to evaluate how effective these events are in promoting their product. Solar Coleman will look at the results of e-mail online marking and evaluate the effectiveness of those techniques by evaluating how many people bought the product through an e-mail link. Solar Coleman will keep track of what consumers have to say about their product through social media in order to keep an innovated product, based on customer feedback will implement changes as needed. Solar Coleman will monitor the geographic region and population that are purchasing their product, so that they can implement their products in store in those regions. Solar Coleman will be analyzing what types of people are purchasing their product, to evaluate if changes need to be made in the marketing approach or if we are targeting the right consumer. We will evaluate our 1st quarter sales goals to actual and see if we need to implement any changes to our marketing strategy. To meet our sales goal of 70,956 to meet our breakeven point, we will rely heavily on online marketing, public relations, word-of-mouth, and events.ImplementationTo make the Solar Coleman a reality, we need to find a partner to provide Coleman with the components need to equip the coolers with the solar panels and charging parts. We need this manufacture to provide us with the lowest possible price for the components to keep the end price of each cooler as low as possible to be more appealing to the consumer.After we get a finished product we plan on testing the product and getting initial feedback from consumers through test marketing ventures such as a trade show or displays in stores. This will allow us make changes to the product as needed according to the feedback before launching the product worldwide.Once we get a finalized version of the Solar Coleman we plan on beginning mass production on the product and immediately launching it through Coleman’s distribution network including retailers such as Costco as well as selling it online through Coleman’s site allowing customers to buy it directly from us while cutting out the middleman.Marketing OrganizationSolar Power Coleman marketing department structures that the marketing department of solar power Coleman consists of two groups that will make Coleman successful to locate the weakness and strengths of the company. The Marketing manager responsibility is to direct the marketing approach that will include messages to website articles that will advertise Solar Power Coleman. This will target audiences who are interested in this product. The manager will be in charge of reports that will manage programs. A Marketing Researcher will utilize market researchers to find information about a target audience for Solar Power Coleman to find but also find competitors in the market. The market manager will find tools to such as surveys, groups that will find the focal point of information that can help Solar Power Coleman succeed in this current market. “Marketing Communication”Contingency PlanningSolar Power Coleman contingency planning may have a risk of losing key employees damage to production, and failure in the quality of the product. We need to make sure that we fulfill all requirements of all regulations so we many not encounter any legal actions. In our contingency planning we need to address all business-critical operations, identify risks, prioritizing risks and we will develop a risk impact and probability chart. This will help us to balance and analyze any foreseeable risks that can impact our company and to have the essentials to survive in case of any problems arising. The planning can provide solutions for any unexpected events that can hurt the company because consistency will be very important because following through with the plans will insure the company that we are doing our due diligence to protect the our assets. The contingency plan has to have a: goal, time periods, implementing the plan, keeping the plan simple, being able to decide which plan to implement at the time of need, fulfilling everyone’s needs, how will the plan be successful, including standards operating procedures, manage risks and identifying operational inefficiencies.ReferencesAdroit Digital. 2012. Online videos look whose watching now. Retrieved from’s Health Rankings. (2014). Retrieved from Energy Outlook 2014. (2014, May 7). Retrieved October 15, 2014, from. (2014). The Outdoor Recreation Economy. Retrieved 13 October 2014, from of Economic Analysis, 2014. U.S. Economy at a Glance: Perspective from the BEA Accounts. Retreived from, B. (2014). When Living Wage Is Minimum Wage. Retreived 7 December 2014, from Company, Inc. (2014). Retrieved from America’s Health Rankings. (2014). Retrieved from Company, Inc. (2014). Retrieved from Investor Relations, (2014). Company profile. Retrieved from, Investor Relations. (2014). Retrieved from, Base The Business Graph. (2014). Home page. Retrieved from,, J. (2014, October 15). BBC. News Health. Retrieved from Zero Company Inc, (2014). Company history page. Retrieved from, Products Are Made. (2014). Retrieved from, P. & Armstrong, G. (2012). Principles of Marketing. Upper Saddle River, NJ: Pearson Education, Inc.Linked In. (2014). The Coleman Company, Inc. home page. Retrieved from, Report: U.S. Solar Market Grows 41%, Has Record Year in 2013. (2014, March 4).Retrieved October 18, 2014, from.(n.d.). Retrieved October 15, 2014, from, R. (2007, November 25). New York Times. Tightening the Beltway, the Elite Shop Costo. Retrieved from Equipment, Inc. (2014). Retrieved from, Solar Power Use: What Are Some Examples of Solar Energy? (n.d.). Retrieved October 18, 2014.The Medical Post. 2014. Retrieved from,. (2014). 10 Top Tourist Attractions in California. Retrieved 8 December 2014, from ................
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