2. Introduction
Bob Block ,president of sage advance , which
manufactures the copper cricket (a patented geyser
pumping solar water heat for home use).
In 1983 they built the first working prototype, end of the
1984 they are searching for licensees for the technology
But during the previous ten years of solar tax credits a
hurricane on mediocre technology had to swept the solar
industry.
3. Countd….
In 1985 government are canceled tax credit.
Next year 85% solar manufacturers disappeared
because of tax credit.
They able to sale 30 system to individuals by
gaining popularity a new shelter magazine.
The firm was not at the breakeven sales level as of
January 1, 1991.
4. The Product
The copper cricket have widely recognized, Popular
science named it one of 1989’s “Greatest Achievement
in science and technology”. The geyser pump is
protected by a strong patent.
A recent survey of copper cricket owners founds that 98
% would recommend the product to a friend.
5. Feature of the product
No outside power required.
No moving parts to fall.
No maintenance.
Freeze proof.
Nationally certified.
10 year warranty.
Kit form for easy installation.
No exposed plumbing.
Less expensive than electricity, gas or coal.
6. The Environment
The energy crisis of 1970 & introduction of tax
credit created a huge market of solar energy
system, Particularly solar water heating system.
Because of the energy crisis & the removal of the
tax credit program in 1985 devastated the industry.
In a year approximately 90% of the solar water
heater producers dropped out of the business.
In 1990’s market picture was uncertain, the
environment was main concern.
The Persian Gulf crisis had increased fuel
prices, but an increasing recession had consumers
nervous about capital outlays.
7. Marketing Efforts
The firm’s marketing efforts have extremely limited due
to its severe cash flow problems.
A significant percent of firm’s sales occur in Oregon.
Sage’s attempts to attract dealers have not been very
successful.
Two large manufacturing who survived the 1985
shakeout have substantial distribution and sales despite
having a less advanced product.
To encourage word-of –mouth communications.
Sage is also working with a number of large electrical
utilities.
8. Discussion Question
How could marketing research have helped Sage
Advance before the cooper cricket was introduced to
the marketplace?
Ans.-
Attract Distributors, manufacturers, customers
Able to identify target segment and be able to sale at
lower price
9. How can marketing research help Sage Advance now?
It can test market and make market strategy
accordingly.
Assume Sage Advance survives its current cash flow
crisis , what role marketing research play in the firm?
It will grab it business easily
10. How should Bob set a budget for marketing
research?
Definitely little bit of exploratory research is needed
and as company faces fund crisis. It could go with
literature review and case analysis(Benchmarking
and ethnography).
