Target Customers
The customer segments are divided into corporate customers and private individuals. The former are automobile manufacturers who will buy the product and install it in vehicles at the point of production. A private customer, meanwhile, is any automobile owner. This means that the product does not discriminate between customers in terms of gender or age. The psychographic profile of the targeted customers is driven by the latest trends in affordability, effectiveness, and automated automobile safety. The market segments are further divided into business-to-business (B2B) and business-to-customer (B2C) components (Kotler and Keller 34). The B2B segment consists of vehicle manufacturers who will acquire the rights to modify this product to fit their different automobiles. The B2C segment will involve direct selling of the product to final users through online retailers such as Best Buy. The product will target car owners, especially youthful buyers who quickly embrace new technology as well as those who might have concerns about parents’ safety in driving due to old age.
Unique Selling Proposition (USP)
The impact detection and remediation system is a unique technologically advanced safety gadget created to guarantee convenience in automobile use since it automatically detects damage and notifies the user (Markel 15). As the first of its kind, this product is designed to improve the accuracy of damage detection and provide a quick alert to enable a user to be in control of the mechanical needs of his or her car.
Pricing and Positioning Strategy
The impact detection and remediation system will be positioned as the first of its kind in the market to offer unique automated damage detection and reporting. Therefore, the business will adopt a penetration pricing strategy consisting of a discounted introductory price that will be adjusted once the product has been embraced by the target market (Scarborough 32).
Distribution Plan
Since the impact detection and remediation system product is focused on single use, that is, in vehicles, it will be sold through an online retailer in addition to the company website. The company will consider contracting Amazon, Best Buy, and other online stores to retail the product at a discount for units sold. The company will also distribute the product to vehicle manufacturers through direct selling or subcontracting a sales agency (Goodman 19).
Special Offers
The company will offer a free installation manual and a trial center, especially for individual customers who are not technologically literate. The business also plans to create a user-friendly website with self-explanatory installation videos in different languages to meet the needs of each customer. In addition, the company plans to establish a toll-free 24/7 support line for customers. Periodically, the business will implement short- and long-term promotional activities such as price discounts, a customer loyalty club, and special gifts for consistent referrals through an online promo code (Albers and Mazur 14).
Marketing Materials
In order to promote the impact detection and remediation system product, the business has created a discount page on the main product website. This button automatically calculates the discount a customer will receive from purchasing a specified number of units of the product (Griffin and Moorhead 25). Moreover, the introduction manual highlights the many problems that might occur in automobiles, following this information with a strong commitment to a 99% detection rate for the installed product. The manual comes with a persuasive statement assuring customers that the product will provide a head start in safety assurance. Since the product is designed to emphasize convenience, the instructions in the installation manual are written in simple language (Goodman 18). However, the business will need to modify the product website to allow for direct buying to avoid overdependence on the online stores.
Promotional Strategy
The promotional strategy for the impact detection and remediation system product will be carried out via traditional and modern media channels. The primary traditional media channels will include print newspapers and billboards. Modern media channels will comprise television, radio, and online ads (Markel 52). Advertising messages about the product will be disseminated by means of these channels to reach as many customers as possible.
Online Marketing Strategy
The keywords to be optimized on the business website are “Vehicle Damage Detection.” The website’s algorithms will be revised by installation of Google optimizers to ensure that search results related to the product appear at the top of the browser list. The business will use this strategy via the company’s YouTube channel to promote the product message, and a visitor will automatically view an accompanying short video, approximately 10 seconds in duration for the embedded visual and audio files (Goodman 37). The business will use social media pages such as Facebook and Twitter to advertise the product and create a fun base. The product pages will be frequently updated with pictures including a link and a “hashtag” that will direct users to the website.
Conversion Strategy
In order to turn prospective clients into paying customers, the first conventional strategy will involve giving a coupon to a customer who buys the product, promoting the next service or purchase. The coupon will have a serial number, and a coupon holder will be guaranteed a discount of 10%. Another conventional strategy will employ a social media strategy through an online promo link. Any customer who visits the website through this link will be awarded points that are redeemable at the point of product purchase (Elder and Krishna 994). Moreover, customers will be given an opportunity to post reviews or view previous ratings on the website.
Joint Ventures and Partnerships
Since the product requires a simple business platform, the company will use the business-to-business model to form alliances with automobile manufacturers to maximize sales and guarantee long-term gains. This joint venture alliance will give automobile manufacturers installation and modification rights for a fee. The business will also consider partnering with sales agencies to increase product visibility in the target market (Bolman and Deal 23).
Referral Strategy
The business has put in place a strong referral strategy characterized by direct rewards for every successful referral (Goodman 17). The company will reward the originator of the referral with a free service package for the product and a 50% discount for every newly introduced update in the market.
Strategy for Increasing Transaction Prices
In order to increase the transaction price, the product will be offered in a bundle consisting of the impact detection and remediation system, a movie camera, installation clips, and a dust cover, at a cost of $200. However, the customer will be given an opportunity to buy the product alone at $170. This strategy will create the perception of it being less expensive to buy the product as part of a bundle, thus increasing the number of sales at $200 per transaction (Kotler and Keller 38).
Retention Strategy
The business will run a loyalty program through redeemable service points for every update or general service on the installed product. These service points will be categorized as platinum for customers frequently passing many units and regular for customers purchasing few units consistently (Kotler and Keller 45). The number of service points will determine the percentage discount for a new purchase.
Exit Plan
In the event the business becomes successful, the company will consider a franchising model to expand its distribution channel and build a strong brand name. The franchising model will also allow the business to increase revenues with minimal operational efforts (Goodman 33). However, in the event of persistent losses over the next two years, the business will be sold off to a vehicle manufacturing company through a negotiated acquisition. This will be a win-win situation since the acquiring company will use the product to supplement their automobile manufacturing processes. However, the future goal of the business is to merge with a large automobile company to optimize profits and expand market presence.
Works Cited
Albers, Michael, and Mary Mazur, editors. Content and Complexity: Information Design in Technical Communication. Routledge, 2014.
Bolman, Lee, and Terrence Deal. Reframing Organizations: Artistry, Choice, and Leadership. 3rd ed., John Wiley & Sons, 2013.
Elder, Ryan, and Aradhna Krishna. “The Visual Depiction Effect in Advertising: Facilitating Embodied Mental Simulation Through Product Orientation.” Journal of Consumer Research, vol. 38, no. 6, 2013, pp. 988-1003.
Goodman, Gail. Engagement Marketing: How Small Business Wins in a Socially Connected World. John Wiley & Sons, 2014.
Griffin, Ricky, and Gully Moorhead. Organizational Behavior: Managing People and Organizations. 10th ed., South-Western Cengage Learning, 2012.
Kotler, Philip, and Kevin Keller. Marketing Management. 15th ed., Pearson Prentice Hall, 2016.
Markel, Mike. Technical Communication. 11th ed., Bedford/St. Martin’s, 2014.
Scarborough, Norman. Effective Small Business Management: Pearson New International Edition. 10th ed., Pearson Education Limited, 2013.