《marketingmixdevelopmentexampleofcaraccessory.ppt》由会员分享，可在线阅读，更多相关《marketingmixdevelopmentexampleofcaraccessory.ppt（73页珍藏版）》请在三一办公上搜索。
1、Marketing Mix DevelopmentApproach for a Car Security System,To propose a marketing mix for XYZ Security Systems,a sister company of ABC,Marketing Mix Summary,ProductTwo need segments:security&convenienceNeed gap:No products tailor-made for the convenience segmentGaps to be filled by Model 50&Model 1
2、00Performance issues with existing products gives XYZ an edgeInstallation critical to performance.Installers training levels/willingness uncertainPriceWithin a given range the buyer price sensitivity is lowMost of the buyers fall in the price segment:WhateversEstablishing functionality provides an o
3、pportunity to increase brand loyaltySkimming Pricing:Model 300&other high end variants Models build aspiration,become benchmarks of functionalityPenetration pricing for Model 50,100.Cannibalize on sales of alarm systemsCompetitive Pricing for Model 200,Marketing Mix Summary,PromotionConsumer Truth:I
4、 yearn for something which is truly secure&reliable in this insecure,unreliable worldBrand Personality:Brand to be embodied as a personal car-guardBorrows from the“Bodyguard”platform that epitomizes reliable securitySecurity platform has not been appropriated by any other brandPlatform of security c
5、an be extended to home security system etc.Phase 1 to communication to build awareness,Phase 2 to build brand imagePR,POPs,Press&Outdoor Ads,Internet&Events to play a role in communicationDistributionSkeleton of distributor management control system does not exist.Little attempt in rationalizing ter
6、ritories&performance managementExisting distributors unhappy with short term distributor management approachNetwork of accessory distributors independent to spare parts.Unlike spare parts,accessory is a Push product.Recommended Distribution Option:XYZ Exclusive,From Products to Brands,Marketing Mix
7、Development,Product Strategy,Pricing Strategy,PromotionStrategy,Distribution,AugmentedProduct,Need Segments,Marketing Mix Development,Product Strategy,Pricing Strategy,PromotionStrategy,Distribution,Need Segments,Two SegmentsCurrent AlignmentNeed GapsXYZ Need Alignment,Security Need Segment,Articula
8、ting“Even if my car is robbed,I want to be sure that it was not robbed due to my carelessness or lack of efforts on my part”“A smart thief can get away with the most secure systems.But I have to make it tough for him”Actually SayingI want a security system that actually works,Convenience Need Segmen
9、t,Articulating“I dont want to manually lock every door.I just want to do it centrally”“My young brother simply loves pressing the remote buttons.He loves showing off almost as if he is a James Bond.You should look at the tesshan(style)”Actually SayingI dont want a security system.I only want central
10、 locking,Convenience of of central locking,the remote adds an element of style,Current Need Alignment,Alignment to Security SegmentExisting products are the alarm system&security system.Products target the security need segment customersNo alarm/security system targeted at cars with central locks“If
11、 a guy has central locking,I give him a rebate of 400-500 Rs”(Prakash Motors)Consumers belonging to the convenience need segment are being sold the alarm/security system instead of a central locking system“I dont have a remote central locking system.So to the customers I sell the alarm system”(Preet
12、 Motors)“I have heard that Silicon has a central locking system that does not have a remote.I sell only Piranha”(Classic Motors)“I think a remote central locking will sell.Most of my customers want that”(Classic Motors),Need Gaps,No products tailor-made for the convenience segment.Customization abse
13、nt in existing products,XYZ Core Products,Manual Central Locking System-Model 50Lock/unlock all doors,aligned to status of drivers door.Remote Central Locking System Model 100.Remote control capability to manual central locking Car Alarm System Model 200Special Door,trunk and bonnet switches are con
14、nected to the 200 control unit.Siren sound if the vehicle is tampered with Car Security System Model 300Immobilizes the vehicle in addition to the siren sounding an alarm in case of intrusion.,XYZ Need Alignment,Convenience Need Segment:Model 50,Model 100Security Need Segment:Model 200,Model 300,Mar
15、keting Mix Development,Product Strategy,Pricing Strategy,PromotionStrategy,Distribution,AugmentedProduct,Core ProductProduct DeliveryAfter SalesAugmented Product,Always listen to the market,Feedback of Existing Products,Accessory Retailer Feedback on Core ProductMotor problems“The motor seems to con
16、k off.This happens in around 5-10%of cases”(Prakash Motors)“Most of the complaints that I get are motor related”(Preet Motors)Remote related problems“I get frequent complaints of remote not working.Sometimes the remote range is a problem.One has to go very close to the car”(Classic Motors)“Often the
17、 remote buttons have to be pressed hard.Sometimes the light when pressing the button fails to light off”(Prakash Motors)Quality is a factor“I think Silicon products are better because it is an ISO 9002 company”(Prakash Motors),Performance/Quality problems with existing products.,Our Core Product Vs.
18、Competition,Product:Proven Technology&QualityLicensed from Directed,the World Leader in Vehicle Security SystemsAdapted for Indian conditions by ABC(Parent Company of XYZ)Engineering TeamDirected designs accepted by GM,Hyundai,Suzuki etc.Only product design approved by FCCManufactured by ABC(Parent
19、Company of XYZ)under ISO 9001 AND QS 9000 standards.ABC(Parent Company of XYZ)is an approved vendor to many OE CustomersCompetition Product:Uncertain QualityUnknown Technology Pirated or Copied.Key Features Like Shock Sensors not reliableImported from unknown sources or manufactured in plants with l
20、ower QC Standards.Limited OE Experience,Edge:Proven Technology,Quality,Feedback on Installation,Accessory retailers perceive installation to be very critical to product performance“If you do not install properly,the alarm might not activate.One of the doors might not be locked”(Preet Motors)Improper
21、 installation related complaints“Of the three major complaints:Activation,Motor activation problems are due to poor installation by us”(Prakash Motors),Proper installation of product necessary to ensure performance,The Electrician:UTM,Not a uniform practice that the installer is trained by the secur
22、ity system company in installation of security systemMost accessory retailers apprehensive whether the UTM installer would be amenable to the idea of training“He has been in the business for 20 years.I do not know whether he will be keen to learn about installation all over again”(Classic Motors)The
23、se guys think that they know all.They have big egos.I dont think that they will welcome any further training”(Distributor A)Installers themselves are wary of any further training“Unless there is something new.I dont feel the need for training”“I have never received a complaint that something went wr
24、ong with the security system that I installed”,Installers current training levels uncertain.Installer not open to further training,XYZ:Product Delivery,XYZ needs to be deeply involved in installationBy putting up a comprehensive training package for installersBy incentivizing installers to undergo t
25、rainingBy insisting that accessory retailers use certified installers for installation,After Sales Service,Besides Margin,After Sales Service is the key factor when a retailer recommends a systemAccessory retailer is 1st guy to be hassled by the customer“I receive frequent complaints about the motor
26、 and the remote.Initially we were replacing it ourselves.Now AutoCop does it,so we direct the customers to the company”(Classic Motors)“Usually when a customer has a problem,he brings the car to my shop.I call the Wheels guy to come over&fix it”(Preet Motors)“My business is car air conditioning.I do
27、nt want to spend much time on security systems that I install”(Hans Air Conditioners)Accessory retailer receives flak for poor after sales service“Customers complain about after sales services.The AutoCop guys do not arrive on time/day promised.Sometimes they repair the system,and it conks off again
28、 later”(Classic Motors),After Sales Service,Accessory retailer knows that the after sales service of the security system will have an impact on customer relationships.In an insecure world,where the customer is being wooed by the car dealer,accessory retailer wants to retain his customer desperately.
29、“Most of customers today buy directly from car dealers.I dont want my customers to face problems with the stuff they buy from me”(Prakash Motors),A lifetime warranty&an effective after sales network will be mission critical in winning a retailers loyalty,Quality of after sales service has an impact
30、on my relationship with a customer.I want to safeguard the relationship.I feel insecure about the growing influence of the car dealer.,Key Retailer Insight,A lifetime warranty&an effective after sales network will be mission critical in winning a retailers loyalty,Augmented Product,Besides core prod
31、uct,the augmented product should ensureEffective installationLifetime warranty and effective after sales networkEffective Installation will build on product reliability and perceived qualityAttractive warranty and after sales network will build strong retailer loyalty and will be a critical factor i
32、n the push strategy,Marketing Mix Development,Product Strategy,Pricing Strategy,PromotionStrategy,Distribution,SummaryTwo need segments:security&convenienceNeed gap:No products tailor-made for the convenience segmentGaps to be filled by Model 50&Model 100Performance issues with existing products giv
33、es XYZ an edgeInstallation critical to performance.Installers training levels/willingness uncertainImproved warranty&an effective after sales service:mission critical in winning a retailers loyalty,Marketing Mix Development,Product Strategy,Pricing Strategy,PromotionStrategy,Distribution,Pricing Str
34、ategy,Price Segments,Marketing Mix Development,Product Strategy,Pricing Strategy,PromotionStrategy,Distribution,Price Segments,Price SensitivityPerceived ValuePrice SegmentsSegment Opportunities,Buying Process,Step 1,Awareness,Word of,mouth,Observation,Step 2,Information Search,Hardly any,Step 3,Eva
35、luate Alternatives,Advice from dealer,Threshold of money,Step 4,Purchase,Car showroom,Car accessory dealer,Step 5,Evaluate,Performance,Acclimatization/Blind Spots,Buying Process:Threshold of Money,Evaluate AlternativesThe buyer has a threshold of money to be spent say 5000.“We did not want to go for
36、 a hi-fi system for Rs 10 000”The car/accessory dealer recommends the model of his favoured brand that comes within the thresholdThe dealer has the final word,Step 1,Awareness,Word of,mouth,Observation,Step 2,Information Search,Hardly any,Step 3,Evaluate Alternatives,Advice from dealer,Threshold of
37、money,Step 4,Purchase,Car showroom,Car accessory dealer,Step 5,Evaluate,Performance,Acclimatization/Blind Spots,Two price points in buyers mind.A hi-fi system 8-10 thousand.A normal one 3-5 thousand,Price Sensitivity,Price Sensitivity:Consumers Point of View“When buying a car of 3-4 Lakhs,I am not r
38、eally worried about extra expense of 3-5 thousand.I know that I will have to shell out an extra 30-40 thousand on accessories/insurance/registration”(Consumer)Price Sensitivity:Retailers Point of View“A consumer does not come with a particular model in his mind.I can recommend the model and the comp
39、any”(Prakash Motors)“A customer may ask for a certain brand.But I can usually sell him the system that I keep(i.e Piranha)”(Classic Motors),Within a given range(say 3-5 thousand),the buyer price sensitivity is low.,Perceived Value,Primary Benefit:User A more efficient locking system“I am assured tha
40、t all locking is done once I press the remote button”“Even if I am careless,I am still assured that the locking has been been done”Perceived Barrier:Non-UserFunctionality is not fully established“Security system is for style”“I go for functionality.no sosha(show-off)”“The only thing it(security syst
41、em)does is consume battery”“I have already taken car insurance.I dont need a gizmo,Perceived value is not high since the functionality is not established.Primary benefit is central locking,not security,Perceptual Map,Security System,High Functionality,Low Functionality,High Style/Convenience,Low Sty
42、le/Convenience,Caught in the middle.Not high on functionality.Not high on style/convenience,Price Segments,Primary Price Segment,CurrentBuyers,Most of the buyers fall in the segment:Whatevers,Segment Opportunity 1,CurrentBuyers,Establishing functionality provides an opportunity to increase brand loy
43、alty by increasing perceived value,FutureBuyers,Segment Opportunity 2,Having a low value product like central locking encourages price sensitive non-users to sample the product,FutureBuyers,NonUsers,Marketing Mix Development,Product Strategy,Pricing Strategy,PromotionStrategy,Distribution,Segmentati
44、on on PriceModel 300Model 50,100Model 200,Pricing Strategy,Segmentation on Price,Model 50,Model 100,Model 300,Model 200,Pricing Strategy:Model 300,Skimming pricing strategy:pricing strategy involving the use of a high price relative to competitive offeringsSkimming strategies used by marketers of hi
45、gh-end goods or servicesWithout other cues,price serves as an important indicator of a products quality to buyers,Skimming,Pricing Strategy:Model 300,High price and performance increases the perceived value of the productCurrently,market for high-end security system is limited,the strategy provides
46、opportunity for Model 300 and above to become the benchmarks of quality,Skimming,Model 300&other high end variants become benchmarks of functionality.,Penetration,Pricing Strategy:Model 50,Model 100,Penetration pricing policy:pricing strategy involving the use of a relatively low entry price as comp
47、ared with competitive offerings;based on the theory that this initial low price will help secure market acceptanceDesigned to generate many trial purchases,Penetration,Pricing Strategy:Model 50,Model 100,Low price provides an excellent hook to lure price sensitive non-users into buying a central loc
48、king/remote lockingHas the potential to cannibalize on sale of higher variants,Model 50,100 increase penetration.Cannibalize on sales of alarm systems.,Competitive,Pricing Strategy:Model 200,Competitive Pricing Strategy:pricing strategy that de-emphasizes price as a competitive variable by pricing g
49、oods at the general level of competitorsFirms focus their own marketing efforts on the product,distribution and promotion elements of the marketing mixNeed to leverage the augmented product with effective installation and prompt after salesBuild differentiation through higher perceived value by reli
50、able product performance and excellent service,Build differentiation(higher perceived value)by reliable product performance and excellent service,Marketing Mix Development,Product Strategy,Pricing Strategy,PromotionStrategy,Distribution,SummaryWithin a given range the buyer price sensitivity is lowM
