MARKET PLAN PART 1



CSU Monterey BayMARKET PLAN PART 1SOLAR COLEMANGerardo Alvarado, Dulce Alonso, Ruben Soto, Joey Ramirez10/17/2014Table of contentsSituation Analysis3Market Summary3Geographics4Demographics5Age Segmentation5Life-Cycle Stage Segmentation6Income Segmentation7Behavior Factors/Psychological8Market Growth9SWOT Analysis10Strengths10Weaknesses10Opportunities11Threats11 Competition11Product Offerings13Keys to Success14Critical Issues14References16Situation AnalysisSolar-Coleman, a solar panel cooler, 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 is attempting to help people in need of charging small electronic devices while outdoors, where no electrical outlet is available, ranging from going camping, fishing, boating, tailgating, going to the beach, any activity that takes place outdoors. Users of a wide range of electrical devices like mp3 players, phones, GPS or tablets need to stay connected will be able to keep their device charged. Staying connected with device for many purposes like communications, taking pictures, listening to music, taking notes, checking in with social media, or simply passing time. Regardless of why one uses any device it will drain the battery. 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 the sun’s rays to usable energy, via a USB port and a 12-volt DC output where users can plug up 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, 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 but as technology, another growing industry, becomes an important part everyone’s everyday lives it becomes harder and harder to leave behind at home. Often while people are enjoying themselves at an outdoor activity such as camping, they are found in remote areas far from any electrical outlets to keep their devices charged and ready to use. To solve this problem we compared different equipment that is often brought along on outdoor activity and decided that a cooler is the best candidate to equip with solar panels to charge electronic devices.From a survey conducted by us this product concept has been received positively by 93.94% of the people who responded. Additionally 78.78% of people surveyed said they would be moderately likely to extremely likely to buy this product if it were available in the market today showing that there is a large amount in this product.Geographics1797052454910By 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., [their] “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). In effect, globalization is a key component to Coleman’s continued success which promises to provide access to the masses for the 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. Figure 1 Bar Graph (How Likely to Buy This Product)26384253826510DemographicsAge SegmentationIn 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 consumer. 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. The “empty-nesters” group, ages ranging from 45-54, was also an important target segment mainly because this segment continues to live active lifestyles. Surprisingly the 25-34 age segments were less than anticipated which indicates this age group has less time for leisure and young families which reduces active lifestyle activities. 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 the America’s Health rankings, People in the 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. Figure 2 Bar Graph (What is Your Age?)Life-Cycle Stage SegmentationMost other products cater to specific life-cycle segments. From our practicum presentation, we illustrated how Beats headphones are marketed to young, hip, and sound-quality conscience 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. While sports cars are targeted to the younger, male consumer. Solar-Coleman seems to cater to 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. 374654432935Figure SEQ Figure \* ARABIC 3 Bar Graph (Family Size)Income Segmentation22923503268345Income 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. 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 which have 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 written 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 new the Pentagon in the Washington area in Arlington, Va. This store is frequented and attracts government officials, ambassadors, and military personal (Perle, 2007). All of which are part of the higher income population. Figure SEQ Figure \* ARABIC 4 Bar Graph (Income Levels)Behavior Factors/PsychologicalBehavior factors which are essential to product success would have to 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 their existing behavioral marketing campaigns. This survey suggests camping, tailgating, and sporting events would be the most common uses for our concept. Fishing, boating/ skiing, and job site use are strong markets which should be included in product marketing.26479581280Figure SEQ Figure \* ARABIC 5 Bar Graph (Activities for Using This Product)Market NeedsBill McKibben 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.” The situation of the marketplace gap is described in some detail that consumers should change their lifestyle from using electricity to using solar power. The main point is that the Solar Coleman Ice Chess would play a very strong significant factor in this need. The specific benefit that 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 factor of portability that this product provides. Gaining this benefit would decrease the necessity of electricity. The Solar Coleman Ice Chess provides for their customers that 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 having change in customer’s lives will give Coleman a chance to innovate their production line.Market Trends:The direction that the solar power industry is heading towards in the twenty first century in which the variable is technology. The web article “Solar Power Is the ” states that, “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!” 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 of this new product will bring into the market a fresh new style of living; Coleman ice chess represents a new growth of direction. An individual who is looking for a fast pace product that will use clean energy which will help provide services such as sufficient amount of energy to power their gadgets. Moving forward in this industry has influenced a new market for consumers that want to be outdoors with the chance to bring their commodities to make them feel more comfortable.Market GrowthThe natural market growth of solar power Coleman Ice Chess has the ability to grow through this market and will give them the value of goods and services that they are going to provide to customers. This measurement of an increase of this product will change over time and the income output will also increase the revenue of this company. On May 7, 2014 a web article was released called the Annual Energy Outlook 2014, it 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.” Solar power rapid success through the years of its existence it has provided many multiple sources of accomplishments for Coleman brands. Solar power is not only the support of growing markets but also Coleman has the necessity to open new doors and increases the generation more than 7.5% from 2012. The projections of solar power have given the chance for success in this current market. Such as the figure MT-37 resembles that solar power is in the mid 500 of billion kilowatt hours which means that this number of projections will continue to grow from the years of its estimated increase of time. 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.” This product of solar power Coleman ice chess will soar through the market gains it will produce as a product. This company production of this ice chess will consume the product market as a strong relation of market growth but also a chance to increase natural resources at an all-time high. SWOT AnalysisStrengths:Brand 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 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 fit the target segments presented earlier. Distribution would also be advantageous with Costco’s existing warehouses and store locations. 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).Weaknesses: One of the weaknesses we have is the reliance on external suppliers for the various components needed. Outsourcing allows the 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 consider further product manufacturing. Opportunities: According to 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: In the most recent BBC News Health article, written by James Gallagher, dated October 15, 2014; and updated at 11:23 ET, Ebola related deaths are now being conservatively estimated at 4,493 (Gallagher, 2014). This alarming statistic will affect consumers buying habits and activities. If this pandemic is not resolved or reduced, we can expect people to isolate their travel arrangements to business, rather than personal use, which would negatively affect sales. CompetitionThe solar panel is unique in the sense that there is not one out on the market yet. There are 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 that provide a similar solution for consumers in need of solar charging solutions. 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 solution for charging small devices. Wagen Tech offers a bigger product that generates more electricity and allows users to power bigger items. -332105796925160551616392Goal Zero launched in June, 2009 and has set out to empower people all over the world. (goal zero, 2014). They create portable solar power systems, ranging from solar panels, portable power packs, generators, chargers and accessories (Crunchbase, 2014).?The goal zero solar panel kit is small lightweight and compact panel allowing portability. The feature of being able to plug up devices using USB while having the capability to charges batteries, simultaneously 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 device (Costco, 2014). “Smart-phones now account for 56% of US market, Apple's iPhone at 25% share” (appleinsider, 2014). Goal Zero is losing out on 25%, of smart-phone, of potential customers. -427990113665Wagan Tech has five portable solar panels; the system that 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. Additionally it will charge a power impact drill for 5 hours, power up a television, (Home depot, 2014). The Solar E-Power Panel Cube offers a limited manufactures warranty of two years (Home depot, 2014). As a consumer, paying close $1000 for a gadget, the expectation is that it must be a durable product, yet the manufacture fails to back its product after two year. It would be assumed that after two years it will most likely fail. The customer must register the product with 30 day in order to acquire the manufacture warranty (Home depot, 2014).Bushnell, solar Wrap 400 Solar power charger, has a flexible solar panel that unrolls when user requires collecting solar energy; once done it rolls back up. It comes in a durable hard case and it is small and compact; Making 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 how the battery capability was low (REI, 2014).Product OfferingSolar-Coleman will provide a solution to charge devices as well address consumer’s 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 like phones, GPS, tablets, cameras and other small electronic devices. Users will have the freedom of being mobile and being able to charge their device while being outdoors away from the electrical power outlets.The Solar-Coleman will offer a compact durable weather-resistant panel on the lid of the cooler. The lid will have two cup holders allowing the user to have an area where beverages can be put on top of the cooler. The solar panel will have a life-time warranty; it will be built to last, proving ease 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 to charge device. 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 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 as they have a long standing association with quality coolers. Consumer instantly recognize the Coleman brand and would be more willing to try out a cooler that is capable of recharging electronics as opposed if it were produced by some other company.Along with the Coleman brand comes it already 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 already well-established retail partnerships the Solar-Coleman will reach a very large percentage of potential customers.The biggest key to success for the Solar-Coleman will be that it will be the first out on the market. This will be a brand new product that will appeal to anyone who does any kind of outdoor recreational 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 our product is heavily supplier dependent as we are purchasing the solar panel components from a third party company and they control the price of the parts which could then affect our production and price point.Secondly, again since this is a new product the market will be wide open for competitors to start making their own version of this product and potentially undercutting some of our demand. Most new products are open to imitators as they try to cash in on the wave of success experienced by the product.One last issue for the product could be that the economy tanks 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.ReferencesAmerica’s Health Rankings. (2014). Retrieved from insider, Quiller Media, Inc.(2014). Retrieved 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 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, In. (2014). The Coleman Company, Inc. home page. Retrieved from, , R. (2007, November 25). New York Times. Tightening the Beltway, the Elite Shop Costo. Retrieved from Equipment, Inc. (2014). Retrieved from, ................
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