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Blue Ocean Strategy Marketing Plan 1
Blue Ocean Strategy
Blue Ocean Strategy Marketing Plan
Katelyn Harvey, Leila Jett, Logan George,
Kaizsa Grant and Jessica Callaghan
BUS-427 Marketing Management
December 5th
, 2016
Flagler College
Blue Ocean Strategy Marketing Plan 2
Executive Summary
Product
The latest design for Graco is a car seat that has the capability to heat and cool. The
technology for this product will be the same as the technology used in bucket seats in a vehicle.
The car seat will be controlled through a remote along with several other safety features.
Business History
Graco is an American baby products company. Graco was founded in 1942 by
Russell Gray and Robert Cone. The company is currently owned and affiliated with Newell
Brands. Graco’s original headquarters was in Philadelphia, Pennsylvania, but is now based out of
Atlanta, Ga. In 1998 Graco introduced the world to the “SnugRide” infant car seat. Since
“SnugRides” introduction Graco has been America’s top selling infant car seat manufacturer.
Structure
Here at Graco, we will have a variety of team members from different departments to
assure that the ComfortTemp is a product that parents, grandparents and friend will all rave
about. We will hire a design team to create the design and mold of our car seat. We will also hire
a technology and safety teams who will make sure all technology is up to date and pass all
regulations. Lastly, we will hire a marketing team to promote and advertise the product.
Support
NHTSA and UL listing will help guide us to provide a product that passes every
safety requirement. They will offer Graco an extensive safety report that we will provide to our
families to reassure them that this is the best product for their children.
Mission Statement
Blue Ocean Strategy Marketing Plan 3
“Graco holds its reputation as the leading baby product manufacturer in high regards.
We are here to serve you and your families in every way possible.” As a company, there is
nothing more important that providing the best product for the families who trust us.
Introducing the Blue Ocean
Greetings! We are the innovation and design team from the Graco Company! As
parents, we are constantly faced with many obstacles on a day-to-day basis. One of our main
concerns is making sure that our children are safe and comfortable at all times. If you are a
parent, you know that is not always an easy. At Graco, our goal is to do just that. We want to
give every parent peace of mind knowing that their child is properly secured where ever they go.
With that being said, we would like to introduce our newest addition to the Graco family – the
ComfortTemp car seat. We have taken the same heating and cooling technology that you see in
the seats of so many cars and trucks today and applied it to your child’s next car seat.
Why did we do this, you ask? Babies are precious gifts and it is very hard to know
exactly what your child is wanting when they cannot communicate with you directly. A couple
of our innovators own vehicles that do not have back seat air vents. This makes is extremely hard
for air and heat to reach the back seat when it is blazing or freezing outside. They would have to
use portable fans to keep the child cool in the summer time and severely bundle them up in the
winter time to keep them warm. Everyday tasks with the babies became a hassle and they
decided it was time for a change. That is where our idea was born.
The ComfortTemp car seat can get cold and warm in a matter of seconds without the
dangerous coils or cords. It is perfectly safe for your baby. You can control it with buttons that
are installed on the base or with our easy to use app on your phone. You can turn on the seat
before you even get to the car. When you receive your seat, you can download the app and enter
Blue Ocean Strategy Marketing Plan 4
the registration number for the seat you just purchased. This is how you will be able to control
your seat. No need to worry because you can register the same seat on multiple devices.
After doing some extensive research on what temperatures are safe for babies, we
determined that the seat will get no cooler than 68 degrees and no warmer than 75 degrees. The
car seat is smart enough to self-control its temperatures. This means if the seat ever goes above
or below those temperatures, it will automatically shut off and send an alert to the registered
phone(s). This protects the baby from getting harmed if a malfunction were to take place. The
seat will also prevent you from turning on the heat if it is already and outside and the cooling
feature if it is already cold outside.
A big problem in the United States is the number of infant deaths we have from
parents leaving their children in the vehicle in the heat. Here at Graco, we want to do everything
we can to prevent those tragedies. Each ComfortTemp car seat comes equipped with a pressure
sensor which senses anything heavier than five pounds. If your phone gets too far away from the
car seat and it senses weight in the seat, your phone will alert you to remind you to turn back and
get the baby out of the car.
The best part is that you can purchase this amazing car seat in three different styles.
We offer the ComfortTemp as a rear facing infant seat, a front facing infant seat and the high-
back booster seat.
Created market space and the rationale
Create Demand
The ComfortTemp car seat is something that every parent is going to want. It will be
really popular in places that reach extremely hot temperatures (Florida) and extremely cold
Blue Ocean Strategy Marketing Plan 5
temperatures (Michigan). Parents everywhere are going to want to make sure their child is safe
and comfortable no matter what it feels like outside.
High Profitable Growth Opportunity
Right now, the ComfortTemp only comes in a three styles. The goal is to make all of
our car seats come with this technology. Later down the line, we would like to offer that
technology in the same car seat stroller duo that we have in so many of our products. We would
be able to sell that option for one low price.
Make Competition Irrelevant
The ComfortTemp is currently the only thing on the market that combines this
technology in a safety-inspected car seat.
Four Action Framework
For decades, Graco has been one of the leading manufacturers for infant and toddler
products. With culture and technology changing so rapidly, Graco understands it must stay with
today’s current trends if it wants to continue to maintain and achieve its goals.
When it comes to purchasing items for a newborn baby or toddler, statistics have
shown that parents will make their purchasing decisions based off of four key areas. Parents will
focus on the overall comfort of the product, how convenient the product is, the overall safety of
the product, and last but not least, how easy the product is to use. These four key factors have
helped shaped what the industry markets and competes on a daily basis.
While the industry has made comfort, convenience, safety and adaptability the
foundation of the business, industries have also sets their sights on what else could they add to
their products to help generate sales. Industries today have put massive attention into the style of
the seat, rather than improving other aspects of the car seat. There are numerous car seats
Blue Ocean Strategy Marketing Plan 6
available, due to the different styles of handle, cloth, covering etc. Companies have made the
design of the product more important than actual product itself.
Even though the design of the product has taken a little too much importance, the
industry has done a great job in maintaining its safety standards. Most car seats today are on a
five- point or six-point harness system. While this is a great standard to have, Graco would like
to raise the bar and create a product with a seven-point harness system. The seven-point harness
system could help take away major looseness the baby or seat may have. A seven-point system
could potentially re-define the safety standards for a car seat.
As stated above, we discussed earlier how comfort, convenience, safety and adaptability is
the cornerstone of this industry. While this has been what industries built their success on, it’s
time to throw some modern technology in the mix. One product that has still not been offered to
the product is a tempered car seat. A tempered car seat would give the baby or toddler the perfect
comfort satisfaction. The car seat would be both heated and cooled. Temperatures would be
regulated by a built in digital thermometer that would not be allowed to exceed certain hot and
cold temperatures.
Reconstructing Market Boundaries
When creating a blue ocean strategy, a company has to break from the competition and
focus on a way to reconstruct market boundaries. To that effect, Graco will have to create a
product that is in a category of its own and attract customers to a compelling feature. The ability
to control the temperature of a car seat will be a unique feature that can drive sales and help
Graco look across boundaries in a new perspective in order to create blue ocean opportunities
within the car seat market. Following the blue ocean guidelines, Graco will focus on the six paths
Blue Ocean Strategy Marketing Plan 7
framework with the purpose of remaking market boundaries for their new product, the
ComfortTemp car seat.
Reconstructing Market Boundaries – Path One
The first path of the framework is to look across alternative industries. Graco will
have to compete with other brands as well as substitutes in the car seat industry that provide
children with both elements of comfort and safety. The only other alternative to the Graco
ComfortTemp car seat is a car that has an A/C and heating system that flows evenly throughout
the whole car. This standard system has the same purpose as the ComfortTemp; however, it is
not specialized for individualized seating. The ComfortTemp will allow parents to adjust the
internal temperature of the car seat to provide children with comfort regardless of the weather
condition outside the car or the climate inside the car. With this product, Graco will create a new
market space that will make customers look past limited alternatives and purchase this unique car
seat.
Reconstructing Market Boundaries – Path Two
The second path is look across strategic groups within industries. Strategic groups
within industries are groups of organizations or companies within an industry that pursues a
similar strategy. By inventing the ComfortTemp, Graco will create a new demand for car seats
and unlock an untapped market. Not only is Graco a well-known brand that has been around for
decades, but it also has many loyal customers who trust and love the brand. This company will
be able to take advantage of the strategic group of parents searching for comfort and safety for
their children. The ComfortTemp is a car seat that provides cooling and heating technology to
give children ultimate comfort whether it is a hot and sunny day or a cold and snowy one. No
other car seat exists that can offer such comfort at the touch of a button. In addition, this car seat
Blue Ocean Strategy Marketing Plan 8
provides top of the line safety, which ensures children will stay strapped in and protected at all
times. Other companies mostly offer simple and standard car seats without any additional
features or benefits. Customers are willing to trade down and purchase these cheaper options if
they cannot afford the more luxury styles. However, if comfort and safety is a priority, concerned
parents will easily trade up for the ComfortTemp once they consider the utility and
overwhelming benefit of the product.
Reconstructing Market Boundaries – Path Three
The third path of the framework is to look across buyer groups. Graco typically
focuses on parents as their main buyer group. Parents are the main targeted buyer group for the
ComfortTemp. While it is generally unsafe to not have children in car seats, it is also illegal. This
makes parents an obvious target audience. This product appeals to parents because they
inherently care about the comfort of their children, want the best for them and want to follow the
law. Parents will do anything to see their children happy and top of the line products such as the
ComfortTemp help to ensure that. Graco has the opportunity to shift the buyer group and expand
it by focusing on people who do not have kids, but that attend baby showers for people that are
expecting. Expanding to this market could unlock new value. Babies are always being born,
which makes friends and family of those who are expecting a huge market.
Reconstructing Market Boundaries – Path Four
Graco is looking across complimentary products and service offerings by evaluating
the total solution customers are looking for when they shop for a new car seat. The first step for a
consumer to be shopping for a car seat is obviously having a car, or at least having access to a
vehicle. When a parent chooses a car seat, they want it to be comfortable and safe for their baby.
Purchasing a car seat is viewed by parents as an investment, so they want it to be well made, be
Blue Ocean Strategy Marketing Plan 9
reliable, and last for the duration of the child’s need. Graco is offering all of these factors in the
ComfortTemp car seat. No other brand offers a temperature-controlled car seat which makes
Graco’s product a unique, reliable, comfortable and safe car seat choice.
Reconstructing Market Boundaries – Path Five
The ComfortTemp car seat has both a functional and emotional orientation in the
market. Graco’s newest addition to the line will provide the functionality of a temperature-
controlled car seat that will help babies and children feel more comfortable on car rides during
extreme weather conditions. The emotional aspect of any car seat is both with the car seat itself
and with the Graco line of products. Parents want their children to be safe and comfortable at all
times and any product that helps them achieve that goal has an emotional tie. Graco has also
been around so long that many people have a sense of emotional connection with the brand,
whether their parents used it or they themselves have been loyal customers.
Reconstructing Market Boundaries – Path Six
Finally, within the sixth framework, Graco is assessing trends and staying focused on
the present times. Graco is hoping to see the trend of temperature-controlled car seats grow and
flourish. Babies and children deserve the comfort and security of a car seat that meets their needs
as they grow and parents need peace of mind that their little ones are safe and secure. In the 60
years Graco has dedicated toward making products for babies and children, the company has
developed a reputation as a trustworthy brand. Graco wants to continue to build on that
relationship with current consumers and future generations.
Big Picture
As Graco prepares to launch its new brand of car seat, the company is excited to
announce a new line of products. Graco is pleased to announce that the new temperature
Blue Ocean Strategy Marketing Plan 10
controlled technology will not only focus car seats for infants and toddlers, but also strollers and
cribs.
Graco has made its primary mission to be able to provide the best products for new
parents. Graco believes that each child should be able to receive the best care and use the best
products his or her parents can afford and Graco is excited to be able to make that dream become
reality.
The new strollers we will focus on a temperature controlled seat that will be based
off of the baby’s weight and outside temperature. The stroller will be similar in design to most
strollers on the market; the only difference is there will be a remote control to adjust
temperatures. There will be a digital thermometer built into the left side of the handle bar of the
stroller. On the right handle bar, there will be two sets of arrows that will give the parent access
to control the temperature of the stroller.
For the new line of cribs, Graco will focus on a crib featuring temperature controls
within the mattress. Graco believes a temperature controlled mattress will be able to provide the
best sleep experience for a child. It will allow each child to sleep in the perfect temperature. Like
the car seat, the crib can also be accessed by using the mobile app. This feature will give parents
the ability to adjust the cribs temperature from a distance. The new temperature controlled crib
will also have a built in digital thermometer to display the current temperature and two sets of
arrows to help adjust the overall temperature.
Graco is very excited about its new line of products. As a company that is dedicated
to the comfort and safety of children, Graco believes each child should have the best products.
Graco wants its new line of temperature controlled products to provide just that.
Blue Ocean Strategy Marketing Plan 11
Reaching Beyond Demand
Graco’s “ComfortTemp” car seat reaches beyond demand in many ways. There is
uncontested market space. There is nothing like this for babies. It can be given as a gift, received
as a gift, donated or even for a specific situation. This product will make people feel safe
knowing their baby or child is comfortable. This is a great value to parents, grandparents,
siblings, neighbors and so many more because this product is different. That is why this
ComfortTemp seat was created.
Graco’s Comfort Temp car seat has a built in cooling and heating system. The car
seat is set to not go over the hot or cold limit for an infant or child. The car seat automatically
prevents itself from becoming too hot or cold. An app will be provided for customers to
download. This app is for the convenience of those who want the car seat control through their
mobile device. One of the most important features of the app is that car seat senses pressure in
the seat and an alarm will sound on the parent’s phone if they move too far from the vehicle
while there is weight in the seat. This will help prevent people from leaving kids in the car. A
power button will come on the car seat if the consumer does not want to control the car seat that
way. Not to mention, these car seats come in stylish colors.
To reach beyond demand, Graco has thought about the non-customers before customers.
Graco separated the non-customers into three tiers. The first tier is soon-to-be non-customers.
First tier customers are the ones who buy from Graco, but also buy from other name brands that
sell baby products, such as a car seat. Maybe a car seat is on sale at Britax and the customer
chooses to go buy their car seat from Britax. Our second tier is the refusing customers. These are
the customers who are loyal to another baby product brand and refuse to try out Graco. The third
tier is unexplored customers: those who never heard of Graco. This could be because they never
Blue Ocean Strategy Marketing Plan 12
shopped for baby car seat or baby products. By reconstructing the three tiers in a different
prospective, Graco has the opportunity to convince non-customers to buy the product. The first
tier to get customers to buy the ComfortTemp car seat will be to offer coupons and show that
Graco’s products are valuable, reliable, safe and manufactured a high level of quality and care.
The second tier for our refusing customers is creating a relationship with moms, families and
friends. Creating commercials and word of mouth can convince refusing customers to join and
be a part of the Graco family. Graco wants to show its loyalty to gain the loyalty of consumers.
This will encourage customers to take an interest in Graco. For our last tier, the unexplored
customers we would create buzz and utilize commercials, digital media and word of mouth to let
those who do not buy baby products or have not heard of Graco know that the brand is the best
choice for them to buy Comfort Temp as a gift, because Graco cares about the safety of babies
and children.
Strategic Sequence
Buyer Utility
This particular Graco car seat is unlike anything out on the market today. Customers are
looking for a product that is useful while also being affordable. With such a unique product it
will draw customers’ attention. Vehicle manufacturers have heated/cooled seats in their vehicles
now, so there is no reason to doubt that the technology works. Parents are willing to do anything
to make their child comfortable and secure.
Price
The price point for the Graco ComfortTemp car seat is $400. The average price of a
normal car seat is between $150 and $200. This car seat is worth the price, because it saves the
customer from having to by a clip on a fan during the summer and during the winter, parents are
Blue Ocean Strategy Marketing Plan 13
easily able to provide warmth for their children. It makes it easier for children to be comfortable
and want to sit in their car seats.
Cost
The cost to build the car seat is going to be $100 dollars. The price is set higher than most
car seats on the market because of the additional cost in having to work the heating and cooling
system into the design of the car seat. The heating and cooling system will be the most costly
addition to the product. Graco will have to buy the technology from the creator in order to put
the system in the car seat. This consideration will absorb the rest of the $250 budget for each car
seat.
Adoption
The main issue that retailers might have with this product is the safety of the child.
Companies are not going to release a product into the market if they do not feel confident in the
safety of the product. The technology will consist of information from vehicles that already have
the heating/cooling in the front seats and showing retailers that has been in use for many years,
so it should be okay to use for our children.
Identify key organizational hurdles and how they will overcome each hurdle
When creating a blue ocean strategy, a company will face four hurdles: cognitive,
resources, motivational, and political. Although all companies face different hurdles, the key to a
successful strategy change is identifying each hurdle and how to overcome it. When developing
the ComfortTemp car seat, Graco must look at every angle of their strategy. Each stage of the
strategy is equally important, from the development stage of the car seat to the execution phase.
Graco will do extensive research and conduct regular product testing in order to overcome any
hurdles they may face in the process. By making the ComfortTemp car seat, Graco wants to
create a win-win solution for all of its consumers and the company itself.
Blue Ocean Strategy Marketing Plan 14
The first hurdle, cognitive, is making people aware of the need for a strategic shift
and to agree on its causes. Graco will face many questions as to why the market needs a product
like the ComfortTemp car seat, especially when it is priced higher than all other car seats and the
safety of the child comes into question. These hurdles may begin to create skepticism among
customers and result in a lack of sales. To overcome these hurdles, Graco must come face-to-
face with the worst operational problems possible and figure out what exactly could make
customers feel uneasy about this new product. Graco will demonstrate to its customers how the
product works and educate them on the benefits of the ComfortTemp technology. Science shows
that people remember and respond most effectively to what they see and experience. Therefore,
letting customers experience the new car seat first hand will help them to understand the
company’s reasoning for developing this specific product. After this is widely implemented, the
hurdle of price will no longer be an issue because after consumers get the full experience through
a product demonstration, it will be clear why consumers are willing to pay a higher price for the
comfort and safety of their children. Focusing on safety, Graco will run a wide variety of routine
tests to assure the heating and cooling elements are guaranteed safe without any possible
glitches. In addition, it is important to listen to your customers’ needs and desires and get them
involved, so they can fall in love with your product and relate to your brand. There is no other
product like this on the market, making Graco’s ComfortTemp car seat in a league of its own.
The second hurdle, limited resources, questions if a company can use fewer resources
to accomplish their goals, or have the money to spend on necessary changes. Graco can
redistribute resources from cold spots such as choosing fabric colors to hot spots such product
development and technology. This is the biggest hurdle Graco will have to overcome because
safety is their top priority when making these new ComfortTemp car seats. Spending the
Blue Ocean Strategy Marketing Plan 15
majority of time researching and getting the technology just right is where Graco should use their
resources. Graco has to use their resources in the most effective way possible in order to
overcome the hurdle of limited resources to avoid any technology glitches which could cause
harm to a child. While this will cost a considerable amount, it must be a main focus so Graco can
create a quality product without any complications, so it can be profitable in the long run.
The third hurdle is motivation. Graco must alert employees of the need for a strategic
shift and identify how the shift can be achieved with limited resources. Graco needs to focus on
three factors to help motivate employees: kingpins, fishbowl management, and atomization.
When creating a new product, you have to have everyone onboard and believe in your product to
make it successful. Kingpins are key influencers of the brand such as the CEO. If the CEO of
Graco can create a positive movement and help employees fall in love with the product that they
are creating, everyone will be able to work as a team, in a happy environment. Fishbowl
management creates a transparent atmosphere where employees get to watch their manager or
CEO in action. With the spotlight shining brightly on the leadership, the workforce will be
motivated by the good example provided by employers. Also, when employees are treated fairly
and given proper understanding of their job, everyone is left emotionally and physically satisfied.
The last factor is atomization. Graco will have to create goals that are attainable for all
employees. These are the ways Graco can overcome the hurdle of motivation within the
workplace and its employees.
The final hurdle is politics. To overcome this hurdle, political forces and tipping
point leaders focus on three disproportionate influence factors: leveraging angels, silencing
devils, and getting a consigliore on their top management team. In this example, Graco will use
doctors as their angels to support and advocate for the ComfortTemp car seat. Providing
Blue Ocean Strategy Marketing Plan 16
testimonials from doctors who stand by this product and align with the values of the company
will reassure consumers that this is the best possible purchase for their children. On the other
hand, Graco will have to identify their devils and create a way to silence them. These would
consist of people who are skeptical of the new technology, including other brands or competitors
that will try to detour customers from purchasing it. Graco will need to win over their detractors
by providing them with facts, data, and strong testimonials from influencers mitigate any
negative opinions about this new blue ocean strategy. Lastly, the company will have to bring on
a consigliore to their top management team; someone who is respected in the industry and has
knowledge of all the possible situations the company could face by implementing this new
strategy. Graco can overcome this hurdle by having someone who has worked in this industry for
years and would be beneficial to the company and its mission.
Building Execution into Strategy
Graco has been a trusted brand for over 60 years now. Parents feel comfortable
purchasing the Graco brand because of the countless years of intuitive design, comfort and safety
that Graco products offer. With the invention and introduction of the Graco ComfortTemp car
seat into the market and into consumers’ lives, Graco wants customers to feel at ease that their
baby or child is safe and comfortable in their car seat. Graco plans to meet this promise through
rigorous, public testing.
Before releasing the product, the ComfortTemp car seat will be thoroughly tested in
the factory for safety. The seat itself is heated and cooled by safety-coils that are controlled both
remotely and manually on the seat, so the factory will ensure that no issues with controlling the
seat will arise. The coils are only able to reach certain high and low temperature, so overheating
or freezing will be nearly impossible, but Graco wants to lower that chance even further by
Blue Ocean Strategy Marketing Plan 17
testing the product so thoroughly that potential issues are completely resolved before the product
ever hits the market. This design and the safety of the seat are at the peak of the marketing
message for this product and Graco wants consumers to feel fully satisfied that their baby or
child is safe when riding in their ComfortTemp car seat.
After factory testing is completed, employees at Graco have agreed to test the
product themselves, with their family. If the employee does not have a child, a realistic doll can
be used that has been modified to react to extreme temperatures and has weight similar to a child
its size. Employees will test the product for a minimum of six months before the product is
released to the public and a great portion of employee reviews and tests will be made available to
the public on the Graco website. After the trial period with the employee is over, they have the
opportunity to review the product to the company for strengths, weaknesses and suggestions for
improvement. This allows the employees to be part of the process and enables them to have their
say in what is being manufactured.
When employee testing of the product is complete, Graco will include consumers in
the testing of the product before it is fully released to the public. All of the testing, factory,
employee-based and consumer trials will be posted on the website and on social media through
commercials and short videos. Employees will write honest reviews of the product and
recommendations to parents who are interested in purchasing the ComfortTemp car seat and the
changes in design that employees directly impacted will be featured, as well. Ultimately, Graco
wants both parents and employees to feel like they had an impactful part in the design of the
ComfortTemp car seat.
Graco intends to continue its work as one of the most trusted brands for babies,
children and their parents’ peace of mind. The company wants to work with employees to build
Blue Ocean Strategy Marketing Plan 18
more trust in the products they are helping design and manufacture and trust in the company to
listen to their suggestions for product improvement. Not only is Graco dedicated to the safety
and comfort of babies and children, it is committed to the happiness and peace of mind for
parents and employees in the Graco team.
Value, Profit and People Proposition
For Graco’s value, profit and people proposition, the main focus is on what problems
the product solves, how Graco is going to increase profit and the target audience.
Value
The Graco ComfortTemp car seat focuses on making sure that both parent and child
are comfortable. It is no secret that when a baby is uncomfortable, they cry until they get exactly
what they want. Since babies obviously cannot communicate with us, parents have to solve
issues before they arise. Graco did just that. This car seat keeps the baby from getting too
uncomfortably hot or cold. When a parent’s car does not come with air vents in the back, they
tend to feel that they need to search for a new car or spend unnecessary money in purchasing
fans to keep their baby cool. With the ComfortTemp, that same parent can keep the car they have
and rest easy knowing their baby is comfortable.
Profit
The ComfortTemp car seat is available in three different styles to grow with a child.
The seat cost varies depending on which style purchased; however, the prices range from $300-
$400. Each car seat only takes about $100 to develop, so the profit from this product is very
high.
People
Blue Ocean Strategy Marketing Plan 19
The people Graco wants to reach out to include mothers, fathers, grandparents, aunts
and uncles and anyone of purchasing age. Graco wants mothers and fathers to see how safe and
comfortable the ComfortTemp is. The ComfortTemp would make a great gift as well from
family members and friends. The best part is that the car seat can be passed down from
generation to generation.
Red Ocean Traps
Creating a new product can be challenging, but that is why it is best to work out the
complications beforehand. Red ocean traps can be hidden in places that most people would look
right over. So to avoid red oceans traps Graco must think ahead.
The misconception that this new baby car seat is about new technology
The first red ocean trap Graco would avoid easily. The Comfort Temp car seat is a part of
technology but it is not new. Graco is using existing technology with an existing product.
Keeping this misconception in mind, Graco will avoid this thought. The company knows what
has been creating and it is not new technology.
The belief that to create a new car seat you have to be first to the market
Graco is the first company to ever put in action this kind of car seat to fulfill the needs of
parents and babies. Competition and being first in the market is not the goal for Graco.
Consumers will put Graco in that position to be first, but Graco is focusing on the babies and
making them feel comfortable.
The belief of perfection and pretending that the new car seat will have no flaws
Graco has done everything possible to make sure the new car seats are safe.
ComfortTemp will have documentation on how National Highway Traffic Safety Association
(NHTSA) and the UL approves this product, as well as how neonatologist and pediatricians
Blue Ocean Strategy Marketing Plan 20
approve the car seat is safe for babies, and Graco will have realistic statistics on ComfortTemp.
Technology is tricky sometimes and things happen, but Graco will help prevent mishaps and
complications from happening for babies’ safety. Graco is not a naive company so preparation is
always put forth.
Blue Ocean Strategy Marketing Plan 21
References
Graco Inc. (n.d.). Retrieved December 05, 2016, from
http://www.graco.com/us/en.html
NHTSA. (n.d.). Retrieved December 05, 2016, from https://www.nhtsa.gov/

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Blue Ocean Strategy Marketing Plan

  • 1. Blue Ocean Strategy Marketing Plan 1 Blue Ocean Strategy Blue Ocean Strategy Marketing Plan Katelyn Harvey, Leila Jett, Logan George, Kaizsa Grant and Jessica Callaghan BUS-427 Marketing Management December 5th , 2016 Flagler College
  • 2. Blue Ocean Strategy Marketing Plan 2 Executive Summary Product The latest design for Graco is a car seat that has the capability to heat and cool. The technology for this product will be the same as the technology used in bucket seats in a vehicle. The car seat will be controlled through a remote along with several other safety features. Business History Graco is an American baby products company. Graco was founded in 1942 by Russell Gray and Robert Cone. The company is currently owned and affiliated with Newell Brands. Graco’s original headquarters was in Philadelphia, Pennsylvania, but is now based out of Atlanta, Ga. In 1998 Graco introduced the world to the “SnugRide” infant car seat. Since “SnugRides” introduction Graco has been America’s top selling infant car seat manufacturer. Structure Here at Graco, we will have a variety of team members from different departments to assure that the ComfortTemp is a product that parents, grandparents and friend will all rave about. We will hire a design team to create the design and mold of our car seat. We will also hire a technology and safety teams who will make sure all technology is up to date and pass all regulations. Lastly, we will hire a marketing team to promote and advertise the product. Support NHTSA and UL listing will help guide us to provide a product that passes every safety requirement. They will offer Graco an extensive safety report that we will provide to our families to reassure them that this is the best product for their children. Mission Statement
  • 3. Blue Ocean Strategy Marketing Plan 3 “Graco holds its reputation as the leading baby product manufacturer in high regards. We are here to serve you and your families in every way possible.” As a company, there is nothing more important that providing the best product for the families who trust us. Introducing the Blue Ocean Greetings! We are the innovation and design team from the Graco Company! As parents, we are constantly faced with many obstacles on a day-to-day basis. One of our main concerns is making sure that our children are safe and comfortable at all times. If you are a parent, you know that is not always an easy. At Graco, our goal is to do just that. We want to give every parent peace of mind knowing that their child is properly secured where ever they go. With that being said, we would like to introduce our newest addition to the Graco family – the ComfortTemp car seat. We have taken the same heating and cooling technology that you see in the seats of so many cars and trucks today and applied it to your child’s next car seat. Why did we do this, you ask? Babies are precious gifts and it is very hard to know exactly what your child is wanting when they cannot communicate with you directly. A couple of our innovators own vehicles that do not have back seat air vents. This makes is extremely hard for air and heat to reach the back seat when it is blazing or freezing outside. They would have to use portable fans to keep the child cool in the summer time and severely bundle them up in the winter time to keep them warm. Everyday tasks with the babies became a hassle and they decided it was time for a change. That is where our idea was born. The ComfortTemp car seat can get cold and warm in a matter of seconds without the dangerous coils or cords. It is perfectly safe for your baby. You can control it with buttons that are installed on the base or with our easy to use app on your phone. You can turn on the seat before you even get to the car. When you receive your seat, you can download the app and enter
  • 4. Blue Ocean Strategy Marketing Plan 4 the registration number for the seat you just purchased. This is how you will be able to control your seat. No need to worry because you can register the same seat on multiple devices. After doing some extensive research on what temperatures are safe for babies, we determined that the seat will get no cooler than 68 degrees and no warmer than 75 degrees. The car seat is smart enough to self-control its temperatures. This means if the seat ever goes above or below those temperatures, it will automatically shut off and send an alert to the registered phone(s). This protects the baby from getting harmed if a malfunction were to take place. The seat will also prevent you from turning on the heat if it is already and outside and the cooling feature if it is already cold outside. A big problem in the United States is the number of infant deaths we have from parents leaving their children in the vehicle in the heat. Here at Graco, we want to do everything we can to prevent those tragedies. Each ComfortTemp car seat comes equipped with a pressure sensor which senses anything heavier than five pounds. If your phone gets too far away from the car seat and it senses weight in the seat, your phone will alert you to remind you to turn back and get the baby out of the car. The best part is that you can purchase this amazing car seat in three different styles. We offer the ComfortTemp as a rear facing infant seat, a front facing infant seat and the high- back booster seat. Created market space and the rationale Create Demand The ComfortTemp car seat is something that every parent is going to want. It will be really popular in places that reach extremely hot temperatures (Florida) and extremely cold
  • 5. Blue Ocean Strategy Marketing Plan 5 temperatures (Michigan). Parents everywhere are going to want to make sure their child is safe and comfortable no matter what it feels like outside. High Profitable Growth Opportunity Right now, the ComfortTemp only comes in a three styles. The goal is to make all of our car seats come with this technology. Later down the line, we would like to offer that technology in the same car seat stroller duo that we have in so many of our products. We would be able to sell that option for one low price. Make Competition Irrelevant The ComfortTemp is currently the only thing on the market that combines this technology in a safety-inspected car seat. Four Action Framework For decades, Graco has been one of the leading manufacturers for infant and toddler products. With culture and technology changing so rapidly, Graco understands it must stay with today’s current trends if it wants to continue to maintain and achieve its goals. When it comes to purchasing items for a newborn baby or toddler, statistics have shown that parents will make their purchasing decisions based off of four key areas. Parents will focus on the overall comfort of the product, how convenient the product is, the overall safety of the product, and last but not least, how easy the product is to use. These four key factors have helped shaped what the industry markets and competes on a daily basis. While the industry has made comfort, convenience, safety and adaptability the foundation of the business, industries have also sets their sights on what else could they add to their products to help generate sales. Industries today have put massive attention into the style of the seat, rather than improving other aspects of the car seat. There are numerous car seats
  • 6. Blue Ocean Strategy Marketing Plan 6 available, due to the different styles of handle, cloth, covering etc. Companies have made the design of the product more important than actual product itself. Even though the design of the product has taken a little too much importance, the industry has done a great job in maintaining its safety standards. Most car seats today are on a five- point or six-point harness system. While this is a great standard to have, Graco would like to raise the bar and create a product with a seven-point harness system. The seven-point harness system could help take away major looseness the baby or seat may have. A seven-point system could potentially re-define the safety standards for a car seat. As stated above, we discussed earlier how comfort, convenience, safety and adaptability is the cornerstone of this industry. While this has been what industries built their success on, it’s time to throw some modern technology in the mix. One product that has still not been offered to the product is a tempered car seat. A tempered car seat would give the baby or toddler the perfect comfort satisfaction. The car seat would be both heated and cooled. Temperatures would be regulated by a built in digital thermometer that would not be allowed to exceed certain hot and cold temperatures. Reconstructing Market Boundaries When creating a blue ocean strategy, a company has to break from the competition and focus on a way to reconstruct market boundaries. To that effect, Graco will have to create a product that is in a category of its own and attract customers to a compelling feature. The ability to control the temperature of a car seat will be a unique feature that can drive sales and help Graco look across boundaries in a new perspective in order to create blue ocean opportunities within the car seat market. Following the blue ocean guidelines, Graco will focus on the six paths
  • 7. Blue Ocean Strategy Marketing Plan 7 framework with the purpose of remaking market boundaries for their new product, the ComfortTemp car seat. Reconstructing Market Boundaries – Path One The first path of the framework is to look across alternative industries. Graco will have to compete with other brands as well as substitutes in the car seat industry that provide children with both elements of comfort and safety. The only other alternative to the Graco ComfortTemp car seat is a car that has an A/C and heating system that flows evenly throughout the whole car. This standard system has the same purpose as the ComfortTemp; however, it is not specialized for individualized seating. The ComfortTemp will allow parents to adjust the internal temperature of the car seat to provide children with comfort regardless of the weather condition outside the car or the climate inside the car. With this product, Graco will create a new market space that will make customers look past limited alternatives and purchase this unique car seat. Reconstructing Market Boundaries – Path Two The second path is look across strategic groups within industries. Strategic groups within industries are groups of organizations or companies within an industry that pursues a similar strategy. By inventing the ComfortTemp, Graco will create a new demand for car seats and unlock an untapped market. Not only is Graco a well-known brand that has been around for decades, but it also has many loyal customers who trust and love the brand. This company will be able to take advantage of the strategic group of parents searching for comfort and safety for their children. The ComfortTemp is a car seat that provides cooling and heating technology to give children ultimate comfort whether it is a hot and sunny day or a cold and snowy one. No other car seat exists that can offer such comfort at the touch of a button. In addition, this car seat
  • 8. Blue Ocean Strategy Marketing Plan 8 provides top of the line safety, which ensures children will stay strapped in and protected at all times. Other companies mostly offer simple and standard car seats without any additional features or benefits. Customers are willing to trade down and purchase these cheaper options if they cannot afford the more luxury styles. However, if comfort and safety is a priority, concerned parents will easily trade up for the ComfortTemp once they consider the utility and overwhelming benefit of the product. Reconstructing Market Boundaries – Path Three The third path of the framework is to look across buyer groups. Graco typically focuses on parents as their main buyer group. Parents are the main targeted buyer group for the ComfortTemp. While it is generally unsafe to not have children in car seats, it is also illegal. This makes parents an obvious target audience. This product appeals to parents because they inherently care about the comfort of their children, want the best for them and want to follow the law. Parents will do anything to see their children happy and top of the line products such as the ComfortTemp help to ensure that. Graco has the opportunity to shift the buyer group and expand it by focusing on people who do not have kids, but that attend baby showers for people that are expecting. Expanding to this market could unlock new value. Babies are always being born, which makes friends and family of those who are expecting a huge market. Reconstructing Market Boundaries – Path Four Graco is looking across complimentary products and service offerings by evaluating the total solution customers are looking for when they shop for a new car seat. The first step for a consumer to be shopping for a car seat is obviously having a car, or at least having access to a vehicle. When a parent chooses a car seat, they want it to be comfortable and safe for their baby. Purchasing a car seat is viewed by parents as an investment, so they want it to be well made, be
  • 9. Blue Ocean Strategy Marketing Plan 9 reliable, and last for the duration of the child’s need. Graco is offering all of these factors in the ComfortTemp car seat. No other brand offers a temperature-controlled car seat which makes Graco’s product a unique, reliable, comfortable and safe car seat choice. Reconstructing Market Boundaries – Path Five The ComfortTemp car seat has both a functional and emotional orientation in the market. Graco’s newest addition to the line will provide the functionality of a temperature- controlled car seat that will help babies and children feel more comfortable on car rides during extreme weather conditions. The emotional aspect of any car seat is both with the car seat itself and with the Graco line of products. Parents want their children to be safe and comfortable at all times and any product that helps them achieve that goal has an emotional tie. Graco has also been around so long that many people have a sense of emotional connection with the brand, whether their parents used it or they themselves have been loyal customers. Reconstructing Market Boundaries – Path Six Finally, within the sixth framework, Graco is assessing trends and staying focused on the present times. Graco is hoping to see the trend of temperature-controlled car seats grow and flourish. Babies and children deserve the comfort and security of a car seat that meets their needs as they grow and parents need peace of mind that their little ones are safe and secure. In the 60 years Graco has dedicated toward making products for babies and children, the company has developed a reputation as a trustworthy brand. Graco wants to continue to build on that relationship with current consumers and future generations. Big Picture As Graco prepares to launch its new brand of car seat, the company is excited to announce a new line of products. Graco is pleased to announce that the new temperature
  • 10. Blue Ocean Strategy Marketing Plan 10 controlled technology will not only focus car seats for infants and toddlers, but also strollers and cribs. Graco has made its primary mission to be able to provide the best products for new parents. Graco believes that each child should be able to receive the best care and use the best products his or her parents can afford and Graco is excited to be able to make that dream become reality. The new strollers we will focus on a temperature controlled seat that will be based off of the baby’s weight and outside temperature. The stroller will be similar in design to most strollers on the market; the only difference is there will be a remote control to adjust temperatures. There will be a digital thermometer built into the left side of the handle bar of the stroller. On the right handle bar, there will be two sets of arrows that will give the parent access to control the temperature of the stroller. For the new line of cribs, Graco will focus on a crib featuring temperature controls within the mattress. Graco believes a temperature controlled mattress will be able to provide the best sleep experience for a child. It will allow each child to sleep in the perfect temperature. Like the car seat, the crib can also be accessed by using the mobile app. This feature will give parents the ability to adjust the cribs temperature from a distance. The new temperature controlled crib will also have a built in digital thermometer to display the current temperature and two sets of arrows to help adjust the overall temperature. Graco is very excited about its new line of products. As a company that is dedicated to the comfort and safety of children, Graco believes each child should have the best products. Graco wants its new line of temperature controlled products to provide just that.
  • 11. Blue Ocean Strategy Marketing Plan 11 Reaching Beyond Demand Graco’s “ComfortTemp” car seat reaches beyond demand in many ways. There is uncontested market space. There is nothing like this for babies. It can be given as a gift, received as a gift, donated or even for a specific situation. This product will make people feel safe knowing their baby or child is comfortable. This is a great value to parents, grandparents, siblings, neighbors and so many more because this product is different. That is why this ComfortTemp seat was created. Graco’s Comfort Temp car seat has a built in cooling and heating system. The car seat is set to not go over the hot or cold limit for an infant or child. The car seat automatically prevents itself from becoming too hot or cold. An app will be provided for customers to download. This app is for the convenience of those who want the car seat control through their mobile device. One of the most important features of the app is that car seat senses pressure in the seat and an alarm will sound on the parent’s phone if they move too far from the vehicle while there is weight in the seat. This will help prevent people from leaving kids in the car. A power button will come on the car seat if the consumer does not want to control the car seat that way. Not to mention, these car seats come in stylish colors. To reach beyond demand, Graco has thought about the non-customers before customers. Graco separated the non-customers into three tiers. The first tier is soon-to-be non-customers. First tier customers are the ones who buy from Graco, but also buy from other name brands that sell baby products, such as a car seat. Maybe a car seat is on sale at Britax and the customer chooses to go buy their car seat from Britax. Our second tier is the refusing customers. These are the customers who are loyal to another baby product brand and refuse to try out Graco. The third tier is unexplored customers: those who never heard of Graco. This could be because they never
  • 12. Blue Ocean Strategy Marketing Plan 12 shopped for baby car seat or baby products. By reconstructing the three tiers in a different prospective, Graco has the opportunity to convince non-customers to buy the product. The first tier to get customers to buy the ComfortTemp car seat will be to offer coupons and show that Graco’s products are valuable, reliable, safe and manufactured a high level of quality and care. The second tier for our refusing customers is creating a relationship with moms, families and friends. Creating commercials and word of mouth can convince refusing customers to join and be a part of the Graco family. Graco wants to show its loyalty to gain the loyalty of consumers. This will encourage customers to take an interest in Graco. For our last tier, the unexplored customers we would create buzz and utilize commercials, digital media and word of mouth to let those who do not buy baby products or have not heard of Graco know that the brand is the best choice for them to buy Comfort Temp as a gift, because Graco cares about the safety of babies and children. Strategic Sequence Buyer Utility This particular Graco car seat is unlike anything out on the market today. Customers are looking for a product that is useful while also being affordable. With such a unique product it will draw customers’ attention. Vehicle manufacturers have heated/cooled seats in their vehicles now, so there is no reason to doubt that the technology works. Parents are willing to do anything to make their child comfortable and secure. Price The price point for the Graco ComfortTemp car seat is $400. The average price of a normal car seat is between $150 and $200. This car seat is worth the price, because it saves the customer from having to by a clip on a fan during the summer and during the winter, parents are
  • 13. Blue Ocean Strategy Marketing Plan 13 easily able to provide warmth for their children. It makes it easier for children to be comfortable and want to sit in their car seats. Cost The cost to build the car seat is going to be $100 dollars. The price is set higher than most car seats on the market because of the additional cost in having to work the heating and cooling system into the design of the car seat. The heating and cooling system will be the most costly addition to the product. Graco will have to buy the technology from the creator in order to put the system in the car seat. This consideration will absorb the rest of the $250 budget for each car seat. Adoption The main issue that retailers might have with this product is the safety of the child. Companies are not going to release a product into the market if they do not feel confident in the safety of the product. The technology will consist of information from vehicles that already have the heating/cooling in the front seats and showing retailers that has been in use for many years, so it should be okay to use for our children. Identify key organizational hurdles and how they will overcome each hurdle When creating a blue ocean strategy, a company will face four hurdles: cognitive, resources, motivational, and political. Although all companies face different hurdles, the key to a successful strategy change is identifying each hurdle and how to overcome it. When developing the ComfortTemp car seat, Graco must look at every angle of their strategy. Each stage of the strategy is equally important, from the development stage of the car seat to the execution phase. Graco will do extensive research and conduct regular product testing in order to overcome any hurdles they may face in the process. By making the ComfortTemp car seat, Graco wants to create a win-win solution for all of its consumers and the company itself.
  • 14. Blue Ocean Strategy Marketing Plan 14 The first hurdle, cognitive, is making people aware of the need for a strategic shift and to agree on its causes. Graco will face many questions as to why the market needs a product like the ComfortTemp car seat, especially when it is priced higher than all other car seats and the safety of the child comes into question. These hurdles may begin to create skepticism among customers and result in a lack of sales. To overcome these hurdles, Graco must come face-to- face with the worst operational problems possible and figure out what exactly could make customers feel uneasy about this new product. Graco will demonstrate to its customers how the product works and educate them on the benefits of the ComfortTemp technology. Science shows that people remember and respond most effectively to what they see and experience. Therefore, letting customers experience the new car seat first hand will help them to understand the company’s reasoning for developing this specific product. After this is widely implemented, the hurdle of price will no longer be an issue because after consumers get the full experience through a product demonstration, it will be clear why consumers are willing to pay a higher price for the comfort and safety of their children. Focusing on safety, Graco will run a wide variety of routine tests to assure the heating and cooling elements are guaranteed safe without any possible glitches. In addition, it is important to listen to your customers’ needs and desires and get them involved, so they can fall in love with your product and relate to your brand. There is no other product like this on the market, making Graco’s ComfortTemp car seat in a league of its own. The second hurdle, limited resources, questions if a company can use fewer resources to accomplish their goals, or have the money to spend on necessary changes. Graco can redistribute resources from cold spots such as choosing fabric colors to hot spots such product development and technology. This is the biggest hurdle Graco will have to overcome because safety is their top priority when making these new ComfortTemp car seats. Spending the
  • 15. Blue Ocean Strategy Marketing Plan 15 majority of time researching and getting the technology just right is where Graco should use their resources. Graco has to use their resources in the most effective way possible in order to overcome the hurdle of limited resources to avoid any technology glitches which could cause harm to a child. While this will cost a considerable amount, it must be a main focus so Graco can create a quality product without any complications, so it can be profitable in the long run. The third hurdle is motivation. Graco must alert employees of the need for a strategic shift and identify how the shift can be achieved with limited resources. Graco needs to focus on three factors to help motivate employees: kingpins, fishbowl management, and atomization. When creating a new product, you have to have everyone onboard and believe in your product to make it successful. Kingpins are key influencers of the brand such as the CEO. If the CEO of Graco can create a positive movement and help employees fall in love with the product that they are creating, everyone will be able to work as a team, in a happy environment. Fishbowl management creates a transparent atmosphere where employees get to watch their manager or CEO in action. With the spotlight shining brightly on the leadership, the workforce will be motivated by the good example provided by employers. Also, when employees are treated fairly and given proper understanding of their job, everyone is left emotionally and physically satisfied. The last factor is atomization. Graco will have to create goals that are attainable for all employees. These are the ways Graco can overcome the hurdle of motivation within the workplace and its employees. The final hurdle is politics. To overcome this hurdle, political forces and tipping point leaders focus on three disproportionate influence factors: leveraging angels, silencing devils, and getting a consigliore on their top management team. In this example, Graco will use doctors as their angels to support and advocate for the ComfortTemp car seat. Providing
  • 16. Blue Ocean Strategy Marketing Plan 16 testimonials from doctors who stand by this product and align with the values of the company will reassure consumers that this is the best possible purchase for their children. On the other hand, Graco will have to identify their devils and create a way to silence them. These would consist of people who are skeptical of the new technology, including other brands or competitors that will try to detour customers from purchasing it. Graco will need to win over their detractors by providing them with facts, data, and strong testimonials from influencers mitigate any negative opinions about this new blue ocean strategy. Lastly, the company will have to bring on a consigliore to their top management team; someone who is respected in the industry and has knowledge of all the possible situations the company could face by implementing this new strategy. Graco can overcome this hurdle by having someone who has worked in this industry for years and would be beneficial to the company and its mission. Building Execution into Strategy Graco has been a trusted brand for over 60 years now. Parents feel comfortable purchasing the Graco brand because of the countless years of intuitive design, comfort and safety that Graco products offer. With the invention and introduction of the Graco ComfortTemp car seat into the market and into consumers’ lives, Graco wants customers to feel at ease that their baby or child is safe and comfortable in their car seat. Graco plans to meet this promise through rigorous, public testing. Before releasing the product, the ComfortTemp car seat will be thoroughly tested in the factory for safety. The seat itself is heated and cooled by safety-coils that are controlled both remotely and manually on the seat, so the factory will ensure that no issues with controlling the seat will arise. The coils are only able to reach certain high and low temperature, so overheating or freezing will be nearly impossible, but Graco wants to lower that chance even further by
  • 17. Blue Ocean Strategy Marketing Plan 17 testing the product so thoroughly that potential issues are completely resolved before the product ever hits the market. This design and the safety of the seat are at the peak of the marketing message for this product and Graco wants consumers to feel fully satisfied that their baby or child is safe when riding in their ComfortTemp car seat. After factory testing is completed, employees at Graco have agreed to test the product themselves, with their family. If the employee does not have a child, a realistic doll can be used that has been modified to react to extreme temperatures and has weight similar to a child its size. Employees will test the product for a minimum of six months before the product is released to the public and a great portion of employee reviews and tests will be made available to the public on the Graco website. After the trial period with the employee is over, they have the opportunity to review the product to the company for strengths, weaknesses and suggestions for improvement. This allows the employees to be part of the process and enables them to have their say in what is being manufactured. When employee testing of the product is complete, Graco will include consumers in the testing of the product before it is fully released to the public. All of the testing, factory, employee-based and consumer trials will be posted on the website and on social media through commercials and short videos. Employees will write honest reviews of the product and recommendations to parents who are interested in purchasing the ComfortTemp car seat and the changes in design that employees directly impacted will be featured, as well. Ultimately, Graco wants both parents and employees to feel like they had an impactful part in the design of the ComfortTemp car seat. Graco intends to continue its work as one of the most trusted brands for babies, children and their parents’ peace of mind. The company wants to work with employees to build
  • 18. Blue Ocean Strategy Marketing Plan 18 more trust in the products they are helping design and manufacture and trust in the company to listen to their suggestions for product improvement. Not only is Graco dedicated to the safety and comfort of babies and children, it is committed to the happiness and peace of mind for parents and employees in the Graco team. Value, Profit and People Proposition For Graco’s value, profit and people proposition, the main focus is on what problems the product solves, how Graco is going to increase profit and the target audience. Value The Graco ComfortTemp car seat focuses on making sure that both parent and child are comfortable. It is no secret that when a baby is uncomfortable, they cry until they get exactly what they want. Since babies obviously cannot communicate with us, parents have to solve issues before they arise. Graco did just that. This car seat keeps the baby from getting too uncomfortably hot or cold. When a parent’s car does not come with air vents in the back, they tend to feel that they need to search for a new car or spend unnecessary money in purchasing fans to keep their baby cool. With the ComfortTemp, that same parent can keep the car they have and rest easy knowing their baby is comfortable. Profit The ComfortTemp car seat is available in three different styles to grow with a child. The seat cost varies depending on which style purchased; however, the prices range from $300- $400. Each car seat only takes about $100 to develop, so the profit from this product is very high. People
  • 19. Blue Ocean Strategy Marketing Plan 19 The people Graco wants to reach out to include mothers, fathers, grandparents, aunts and uncles and anyone of purchasing age. Graco wants mothers and fathers to see how safe and comfortable the ComfortTemp is. The ComfortTemp would make a great gift as well from family members and friends. The best part is that the car seat can be passed down from generation to generation. Red Ocean Traps Creating a new product can be challenging, but that is why it is best to work out the complications beforehand. Red ocean traps can be hidden in places that most people would look right over. So to avoid red oceans traps Graco must think ahead. The misconception that this new baby car seat is about new technology The first red ocean trap Graco would avoid easily. The Comfort Temp car seat is a part of technology but it is not new. Graco is using existing technology with an existing product. Keeping this misconception in mind, Graco will avoid this thought. The company knows what has been creating and it is not new technology. The belief that to create a new car seat you have to be first to the market Graco is the first company to ever put in action this kind of car seat to fulfill the needs of parents and babies. Competition and being first in the market is not the goal for Graco. Consumers will put Graco in that position to be first, but Graco is focusing on the babies and making them feel comfortable. The belief of perfection and pretending that the new car seat will have no flaws Graco has done everything possible to make sure the new car seats are safe. ComfortTemp will have documentation on how National Highway Traffic Safety Association (NHTSA) and the UL approves this product, as well as how neonatologist and pediatricians
  • 20. Blue Ocean Strategy Marketing Plan 20 approve the car seat is safe for babies, and Graco will have realistic statistics on ComfortTemp. Technology is tricky sometimes and things happen, but Graco will help prevent mishaps and complications from happening for babies’ safety. Graco is not a naive company so preparation is always put forth.
  • 21. Blue Ocean Strategy Marketing Plan 21 References Graco Inc. (n.d.). Retrieved December 05, 2016, from http://www.graco.com/us/en.html NHTSA. (n.d.). Retrieved December 05, 2016, from https://www.nhtsa.gov/