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Decoline

Marketing Plan created by Alana, Kaveh , Joshua and Vlad. Decoline. Intro + cause of problem Problem Identification Product identification Research and findings SWOT Alternatives Solution Implementation Sales Projection Course concepts References. Agenda.

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Decoline

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  1. Marketing Plan created by Alana, Kaveh, Joshua and Vlad Decoline

  2. Intro + cause of problem Problem Identification Product identification Research and findings SWOT Alternatives Solution Implementation Sales Projection Course concepts References Agenda

  3. Received Request for Proposal (RFP) from Bryant Inns for a new product. • Diana Cromwell, the purchasing agent for Bryant Inns indicated a dissatisfaction with the short service life of their vinyl/paper based wall coverings that are made of foam and have a product life of only 2 years. Her requests for Decoline include: • Sound proofing • Stain resistant • Meet safety requirements • Fire resistance • Design attractiveness • Durability to withstand high traffic areas Introduction relating to Problem cause

  4. What pricing strategies should Canty International employ to establish a selling price for the Decoline panels to its current customer and to new markets Problem statement

  5. Decoline – A semi-rigid decorative fabric panel product. • Techno-fabric covering and bamboo fiber core • Abrasion resistant and soil-proof • Specially treated for fire resistance • Effectively filters sound • 10 year lifespan product Information

  6. Monthly Fixed Costs

  7. Variable Costs

  8. Break Even costs Total Cost = Total Fixed Cost + Total Variable Cost (Number of units) Break Even Price = Total Cost / Number of Units

  9. Competition price 100.67/ roll 100.67 / 5.2 = $19. 36/ m² This price does not include installation

  10. Value perceived by consumer based on competitors price 19.36 m² x 5 years = $96 m² Value perceived by consumer based on CI’s previous product 11.50 m² x 5 years= $57.50 m² (Installation costs not included) Value based price

  11. The target markets for Decoline are hospitality and construction industries along with government institutions; however the current focus of this project is Bryant Inns Target market identification

  12. target market Demographic • Construction • Interior Design Companies • Government Institutions • Government-run daycare • Hospitals • Schools • Hospitality Industry • Hotels, resorts and motels Geographic • Will be nationwide, with focus on local markets. Physiographic • Organizations that pride themselves on high self-image Behavioral • Organizations creating long-term relationships with suppliers as well as striving for social status in the corporate world

  13. Established strong reputation for quality and service. Strong consumer relationships Innovative products High Quality Standards Cost Advantages Low lead-time on materials (2 weeks) Internal Strenghts

  14. Canty International currently runs at only 77% of optimum production Capacity. Lack of Patent Protection for new product Limited production capabilities Not an off the shelf product. Cannot pre-produce in high quantities. Internal Weaknesses

  15. Durable products and increasing demand for this particular product. Canty International with be able to create Patents for new products. New technology (machines, tools, etc) Expand beyond hotels into other business with high-level traffic areas. EXTERNAL Opportunities

  16. Unstable economy- Recession Changing consumerDemand Copywrite abuse from competitors A new superior product created by our competition at a lower price. External Threats

  17. Market Penetration Pricing • value Based Method • Price Skimming • Cost Based Method • Market Penetration Pricing • Cost Based Method Alternatives

  18. Adding a per cent mark-up to the cost of the product penetration pricing using Value based method

  19. Advantages • Easy to calculate • Minimal information requirements • Easy to administer • Ethical advantage • Disadvantages • Doesn’t recognize the role of consumers and competitors • Has to assume costs do not vary at different levels of production • Set on estimates of average costs Market Penetration Pricing

  20. Higher price point to maximize profits from Early Adopters Price Skimming using cost based method

  21. Advantages • High price signals high quality • Recoup R&D costs early • Flexibility in future price setting • Disadvantages • High unit costs associated with low unit production • May encourage competition • Slow rate of adoption Price skimming

  22. Introduce the new product at a low initial price to build sales, market share, and profits quickly. Market Penetration Pricing

  23. Advantages • Build market share, sales and profit quickly • Attracts early adopters • Sales continue to grow as costs drop • Disadvantages • May not have capacity to satisfy demand • Low cost does not signal high quality • Does not maximize potential revenue Market penetration

  24. Client - Bryant Inn and New Markets • Price Skimming using the cost based method. • Start at the highest value perceived by consumers • New product on the market • High quality • Price changes Solution

  25. Bryant’s inn implementation • Product - Decoline • Fire resistant • Durable • Sound proof • Withstand hotel traffic • Meet safety requirements • Provide 10 year warranty • Price • Value Based Price Skimming • 73.98/ms for 500 ms • Cash Discounts • Cumulative Quantity Discounts

  26. Bryant’s Inn implimentation • Place • Uniform delivering price will be offered • Create an effective distribution channel • Promotion • Have a visible logo on the finished product packaging • Installation trucks with clearly visible Canty Int’l logo

  27. Product • Durable • Fire resistant • Attractive • Sound proof • Low maintenance • Meet industry safety requirements • 10 year warranty Plan of action – target markets

  28. Price • $73.98/m2 for 500m2 • $47.04/m2 for 2000m2 • $45.24/m2 for 7500m2 • Cash Discounts • Cumulative Quantity Discounts Plan of action – target markets

  29. Place • Create contracts with transportation and delivering companies • Urgent delivery system • Create own distribution system Plan of action – target markets

  30. Promotion • Increase product awareness • Trade shows • Market presentations • Cold calling • After generating leads, send sales reps to introduce the product and generate sales. Plan of Action – target Markets

  31. At 500 m2 per month • $73.93 x 500 m2x 12 = $443,580.00 • At 2000m2 per month • $47.04 x 2000 m2x 12 = $1,128,960.00 • At 7500m2 per month • $45.24 x 7500 m2x 12 = $4,071,600.00 1st year Sales projection

  32. Value based method • Over all value of the product perceived by consumer • Cost based method • Determining the price based on cost • Price skimming • Innovators and early adopters willing to pay more for new product • Market penetration pricing • Setting the initial price low to build sales and gain market share • Business to Business • Marketing specifically directed to selling products to other businesses Course concepts

  33. (2009, May). Sweet Home. Retrieved October 31, 2009, from http://www.sweetspot.ca (Unknown). All Modern Baby. Retrieved November 03, 2009, from http://allmodernbaby.com (Unknown). Wall Paper Whole Sale. Retrieved November 03, 2009, http://www.wallpaperwholesaler.com (Unknown). Wallpaper whole Sale, retrieved November 03, 2009 http://www.sweetspot.ca/SweetHome/eco_chic/9088/wall_flower/ References

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