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MondoMower Marketing Plan

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MondoMower Marketing Plan

  1. 1. MondoMower by TechoLawn Marketing Plan 2016–2019 Submitted by Team Spotify: Clinton Bartek Ross Bruening Dain Christensen Jacob Dudley Anindita Mukherjee Mikaela Yeager Submitted to: Dr. Amit Saini, Associate Professor of Marketing, University of Nebraska–Lincoln, College of Business Administration April 29, 2016
  2. 2. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- i MondoMower: Advanced Lawn Maintenance EXECUTIVE SUMMARY Product Idea & Purpose The labor required to maintain a scenic lawn can be both time-consuming and costly. To save on such expenditures, while also minimizing negative environmental effects, business owners with large commercial lawns can rely on the MondoMower—an autonomous, battery-powered lawn mower that eliminates the need of operator input or supervision. The advanced engineering of the MondoMower gives it the ability to maintain up to five-acre lawns in a single mowing session, even in rainy weather and on uneven terrain. High-efficiency plastic string— versus a traditional metal blade that needs sharpened over time—gently trims the lawn and produces fine clippings that serve as a natural fertilizer. Laser-based obstacle avoidance technology ensures optimal safety, and on-board GPS integration assists with navigation. The MondoMower can even detect when its battery is running low, prompting it to maneuver its way to the self-charging docking station. Market Opportunity While a handful of self-operating lawn mowers have surfaced in the last several years, most are designed to only manage residential lawns no larger than one acre (44,000 square feet) in size. This limited capability makes the devices impractical for businesses such as golf courses with vast green areas typically maintained by contracted workers or internal employees. Product Positioning TechnoLawn will position the MondoMower as a premier self-operating lawn mowing device trusted for safely, efficiently, and economically maintaining larger, commercial lawns. This will be achieved by leveraging the MondoMower’s competitive advantage: high operating power, intuitive functionality, and unparalleled safety features. Marketing Mix Product: The MondoMower will have a sophisticated, adroit, and futuristic appearance. Points-of- parity include environmental friendliness (no harmful emissions) and economic effectiveness; capability to endure elevated terrain and function in wet conditions; ability to control the device from a smartphone; battery-operated; size and weight (30 pounds); product warranty, service contracts and guarantee; self-charging docking station; and low noise. Points-of-difference include integrated GPS navigation; greater working area capacity (five acres); cost-effective cutting feature (plastic string versus metal blade); longer battery power; and unique safety sensing (laser-based obstacle avoidance). Price: The per-unit price will be slightly higher than direct competitor pricing due to added features, benefits, and performance. Promotion: Develop a cohesive digital and social media strategy featuring paid/targeted ads, video demonstrations and business owner testimonials. Select golf courses and hotels/resorts in the target geographic area and rely on the sales force team and a grassroots marketing, public relations, and advertising campaign to build awareness and trial use. Place: Employing a niche market approach, the Mondomower will initially be promoted and sold to golf courses in the state of Florida that consider lawn maintenance a priority but do not heavily depend on it for building brand equity. Along with ranking top in the nation for number of golf courses, Florida’s subtropical climate requires year-round lawn care, making it an ideal launch location for the MondoMower. Visible demonstrations of the device in action on designated golf courses and hotels
  3. 3. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- ii will allure patrons, building product awareness and believability that leads to buying consideration for their own businesses. Budget: Development & Commercialization The below cash flow statement breaks down the projected costs needed to successfully implement this plan and the outlined objectives. Projected One-Year Expenses (in thousands of dollars) Year 0 Year 1 Development Costs  Product Development/Enhancement  Market Research  Manufacturing Development -4,500 -1,500 -500 -2,500 -600 -50 -50 -500 Marketing Costs  Brand Development  Website  Advertisements (digital, social & print)  Public Relations  Demonstration & Testimonial Videos -210 -80 -20 -0 -10 -100 -110 -0 -5 -100 -5 -0 Allocated Overhead  Employee Salaries  Employee Benefits  Sales Force Training  Operational/Office Resources  Travel  Liability Insurance  Legal Costs -1,700 -1,000 -250 -20 -60 -20 -100 -250 -2,830 -2,000 -500 -10 -40 -80 -100 -100 Total -$6,410 -$3,540
  4. 4. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- iii Table of Contents Section Page 1.0 Introduction..................................................................................................................................1 1.1 Industry Background & History...............................................................................................1 1.2 Market Opportunity .................................................................................................................1 1.3 Competitive Advantage ...........................................................................................................1 1.4 Expected Sales .........................................................................................................................2 2.0 Situation Analysis.........................................................................................................................3 2.1 Environmental Analysis...........................................................................................................3 2.2 Demographic Analysis.............................................................................................................3 2.3 Political Conditions:.................................................................................................................3 2.4 Economic Conditions...............................................................................................................3 2.5 Legal Analysis .........................................................................................................................4 2.6 Competitor Analysis ................................................................................................................4 2.7 Industry Analysis .....................................................................................................................5 3.0 Marketing Planning.....................................................................................................................7 3.1 Marketing objectives................................................................................................................7 3.2 Segmentation and Targeting ....................................................................................................8 3.3 Positioning ...............................................................................................................................9 4.0 Marketing Mix ...........................................................................................................................11 4.1 Product...................................................................................................................................11 4.1.1 Description.................................................................................................................................11 4.1.2 Key Features ..............................................................................................................................11 4.1.3 Specifications.............................................................................................................................12 4.1.4 Life Cycle ..................................................................................................................................13 4.1.5 Competitive Advantages:...........................................................................................................13 4.2 Promotion...............................................................................................................................14 4.3 Distribution ............................................................................................................................17 4.4 Price .......................................................................................................................................17 4.4.1 Pricing........................................................................................................................................17 4.4.2 Discounts and Special Deals......................................................................................................18 5.0 Implementation & Control of the Marketing Plan.................................................................19 6.0 Summary.....................................................................................................................................20 APPENDICES..................................................................................................................................22 Appendix A: Marketing Planning..................................................................................................23 Appendix B: Marketing Mix...........................................................................................................24 Appendix C: Financials...................................................................................................................27 Appendix D: Market Research.......................................................................................................29 REFERENCES.................................................................................................................................30
  5. 5. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- iv Table of Figures Figure Page Figure 2 7 Robotic Lawn Mower Market Share by Revenue 2014 (Business Wire, 2015)………... 5 Figure 3.3 Robotic Lawn Mower Perceptual Map: Desired Positioning for TechnoLawn………... 10 Figure 4.1.3 Specifications………………………………………………………………………….12 Figure 5.1 Implementation and Control Calander…………………………………………………. 19 Figure 4.2.1 Website Example …………………………………………………………………….. 24 Figure 4.2.2 Sales Brochure Example ……………………………………………………………...25 Figure 4.4.1 Production Costs ……………………………………………………………………... 26 Figure 4.4.2 Cost Per Acre Comparision ………………………………………………………….. 26
  6. 6. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 1 1.0 Introduction Automation and Robotics are increasingly being used in manufacturing to reduce the human labor required to do highly repetitive tasks. This can be seen in the automotive industry where robots are used to weld, paint, and even inspect automobiles being manufactured. At hardware stores, such as Home Depot, cashiers are being replaced with self-checkout machines. McDonald’s is starting to install self-service kiosks that “allow a customer to order and pay for their food without ever interacting with a human” (Peterson, 2015). Robots are starting to work their way out of the commercial sector and into the residential sector as well, with items such as iRobot’s, Roomba. As technology continues to progress and get more advanced, the tasks robots are capable of performing are also going to increase. Lawn care, particularly mowing, is one segment of the robotic industry that is posed to revolutionize how humans spend their labor and recreational hours. 1.1 Industry Background & History The attempt to make an automated lawn mower goes back to at least 1986, when a group of students at the University of Cincinnati created a prototype (Hicks and Hall, 2000). In 1995, Friendly Robotics (originally called Friendly Machines) was founded in Israel by Udi Peless and Shai Abramson (Robomow.com); Friendly Robotics started selling their first commercial model of an automated lawnmower in 1998 (Probiotics.com). Friendly Robotics only sold a few hundred of their lawn mowers in the U.S., concentrating most of their sales in Europe. Currently Friendly Robotics is the market leader in robotic lawn mowers and holds almost half of the market share (Business Wire, 2015). The majority of the remaining market share of robotic lawn mower companies is held by three European companies: Husqvarna (Sweden), Zucchetti Centro Sistemi (Italy), and Global Garden Product (Italy) (Business Wire, 2015). U.S. companies such as John Deere are starting to enter the robotic lawn mower market, as is Japan’s Honda (Neff, 2012). Currently, the market appears to be concentrated mostly in Europe, and mostly for small residential lawns. As an example, Honda launched their product exclusively in Europe in 2013 (Neff, 2012), completely forgoing the U.S. market. 1.2 Market Opportunity With the majority of the robotic lawn mowers focused in Europe and on small residential lawns, TechnoLawn is positioned to capitalize on the market opportunity for commercial automated lawn mowing needs in the United States, with its MondoMower. The MondoMower is an all-weather battery-powered automated lawn mower that can mow up to 15 acres a week, and is uniquely situated to service the commercial industry needs. The MondoMower will be marketed to Florida’s 1250 golf courses. With Florida showing an increase in population and number of tourists, the golf market, and hence the market for golf course lawn maintenance, is poised to increase as well, or in a worst case stay steady. 1.3 Competitive Advantage The MondoMower uses laser-based obstacle avoidance technology, and onboard GPS differential navigation to consistently and safely mow up to 15 acres per week, with a 10 year lifespan. Unlike competing robotic lawn mowers, the MondoMower’s differential GPS system does not require guidewires, saving consumers not on the expense of wire installation and maintenance, but also lawn damage caused by the wire installation. The MondoMower utilizes four wire blades powered by electric motors to efficiently, cleanly, and most importantly safely cut grass, leaving the trimmings behind to act as fertilizer. The onboard laser-based obstacle avoidance adds an additional layer of safety, ensure the MondoMower does not run over anything it is not supposed to. TechnoLawn also stands behind their product, offering a two
  7. 7. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 2 year warranty standard, for any consumer who purchases two or more ModowMowers. TechnoLawn also offers extended warranty and service packages to consumers for a nominal fee, allowing them to know that help is always just a phone call away. The minimum wage in Florida is subject to adjustment yearly, allowing for wage inflation across the entire state. The MondoMower, allows golf course owners and managers the ability to accurately predict, maintain, and even reduce their labor costs, over traditional lawn maintenance services. 1.4 Expected Sales The MondoMower will sell for $19,999, and will cost around $10,000 to produce, providing a 50% gross margin on each unit sold. TechnoLawn will also sell an extended warranty package. In the first year TechnoLawn forecasts approximately 300 units sold and 150 warranty packages resulting in $3.16 million dollars in sales. The high gross margin per unit, along with the warranty packages, will allow TechnoLawn to recoup its research and development costs as well as pay their full-time sales and support staff of around 29 people. TechnoLawn is expecting sales of $4,500,000 by the end of year three, posting a loss of $890,000. TechnoLawn projects the breakeven point will be reached approximately 6 years after product launch.
  8. 8. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 3 2.0 Situation Analysis 2.1 Environmental Analysis Florida is located in the southeastern United States and has a subtropical climate. Florida is approximately 500 miles long (north to south). Due to the large north to south length, the weather in northern Florida is slightly different than southern Florida. In northern Florida there is a rainy season from June to August. During the rainy season, average over 7” of rain a month. In the non-rainy season average rainfall is between 3 and 6 inches (U.S Climate data, 2016). The coldest month of the year is January where the average low is 39˚F (U.S Climate data, 2016). Due to the colder winter temperatures lawns do not always require mowing during the winter months (University of Florida, 2015). Southern Florida has a longer rainy season, which lasts from June to September, with average rainfall between 6.3” to 9.7” (U.S Climate Data, 2016). January is the coldest month of the year with an average low of 60 ˚F (U.S Climate Data, 2016). Due to the warm temperatures, year round lawn maintenance will be required. 2.2 Demographic Analysis In 2015 the population of Florida was estimated to be 19,815,189 per the US Census Bureau, representing a 5.4 percent increase from 2010. Florida is also a popular tourist destination with 98,492,000 people visiting the state, an increase of 6.6% over 2014 (Visit Florida, 2016). Florida also has more than 1,250 golf courses, more than any other state (State of Florida, 2016). This positive trend in population and visitors ensures a consistent market for golfing, and therefore golf course maintenance. 2.3 Political Conditions: Per the United States Department of Labor, the minimum wage in Florida for 2016 is $8.05 per hour, this is higher than the Federal minimum wage of $7.25. The Florida minimum wage is recalculated every year on September year based off of the federal consumer price index. The 2016 minimum wage did not increase from the 2015 level, however, prior to 2015 the minimum wage has been increasing on average by $0.15 per year (GovDocs). The current average yearly wage for a lawn maintenance worker in Florida is $24,000 (Indeed.com) or approximately $11.57 per hour. The possibility of a yearly minimum wage increase in Florida will therefore not directly impact the required wage for an average lawn care worker; however, wage inflation caused by the increasing minimum wage will have an effect on worker salaries. The MondoMower allows for a business to better and more accurately predict and control lawn maintenance expenses for years to come. 2.4 Economic Conditions The United States represents 50% of the world market for powered lawn and garden equipment (Research and Markets, 2015). The powered lawn and garden equipment market in the United States is valued at $10 billion and is projected to increase by 3.2% per year until 2019 (Freedonia Group, 2015). The southern United States, accounts for 38% of market demand (Freedonia Group, 2015). Robotic lawn mowers are currently considered a niche product, mostly in the residential section, but robotic lawn mower sales are expected to triple by 2019 (Freedonia Group, 2015). While both the residential and commercial sectors of the market are expected to grow, the commercial sector is expected to expand faster than the residential sector (Freedonia Group, 2015).
  9. 9. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 4 2.5 Legal Analysis Golf courses, the target market for the ModowMower, face a high risk of lawsuits, with golf ranking first or second in sports related lawsuits (Applebome, 2010), baseball being the other major sport attracting lawsuits. Golf course owners currently face potential liability lawsuits from a variety of sources, such as errant golf balls, clubs, or golf carts (Devoto, 1993). Public golf courses are often exempt from liability due to negligence, but private golf courses are often not afforded the same exemption (Devoto, 1993). Owners and operators may be liable for injuries sustained on the golf course if it can be shown the owner or operator failed to “exercise ordinary care in maintaining the course in a reasonably safe condition” (Devoto, 1993). By providing consisting performance, the MondoMower can help assure owners and operators that their courses are well maintained, reducing the likelihood of them being found liable in the event of an injury. However, until the owners and operators can trust that the MondoMower can adequately maintain the grounds, it may be hard to convince them to assume the liability risk, creating an incentive for owners and operators to resist being an early adopter. When an injury occurs due to equipment on the golf course, such as a golf cart, it is possible that several parties can be found liable, including the operator, owner, servicer, seller and or the manufacturer of the equipment (Devoto, 1993). The MondoMower uses two distinct safety features to minimize the chances of an injury accident. First the laser-based obstacle avoidance system prevents the MondoMower from mowing over an occupied area. Second, the wire cutting blades that will cause significantly less injury than a traditional mower blade should an impact with the blades occur. In the case of golf cart accidents the injured party's negligence is often used to offset some or all of the defendant's liability (Devoto, 1993), due to the safety features of the MondoMower should an injury occurs there will be a high probability, it was at least in part due to others negligence. TechnoLawn, however, will need to carry a liability insurance policy to protect themselves from accidents, private golf courses already carry this liability insurance, and it is unlikely that the use of the MondoMower will raise their rates appreciably. 2.6 Competitor Analysis The MondoMower’s primary competitors are other high end lawn care tools; automatic lawn mowers such as the Husqvarna Automower, Commercial golf course mowers such as the John Deere 7500A PrecisionCut, high end riding lawn mowers such as the John Deere X700 Lawn tractor series, and lawn service companies such as Down to Earth Inc, which operates throughout the entire state of Florida. The MondoMower also faces some competition from traditional personal mowers, such as the Toro self-propelled lawn mower, and even neighborhood kids mowing lawns in the summer; however, due to substantial price differentials these competitors are not considered to be in direct competition. A commercial golf course mowers such as offered by John Deere series mowers are built for golf course maintenance. The John Deer mowers are all-wheel drive, with powerful motors. Different types of mowers are sold for different purposes. The fairway cutters are configured with two cutting decks that can be independently shifted to the left or right to allow for variable width cutting (Deere.com). The rough cutters are built with wider mowing surfaces and one rotary blade. The commercial mowers are quite expensive and have a wide range in price depending on use. A smaller Trim and Surrounds Mower starts at $25,766, and a high end Fairway Mower can sell for as much as $72,716 (Deere.com)
  10. 10. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 5 A traditional riding lawn mower such as the John Deere X700 series Lawn tractor (one of the higher end John Deere models that could be used for commercial lawn maintenance), are gasoline powered, offer cutting widths from 48” in width up 60” in width, and have a top speed of 8.5 miles per hour. The mowers come in two and four wheel drive configurations, and have 21 to 25 inch turn radius to suite different lawn needs. The John Deere X700 series lawn tractors come with a 4 year warranty (Deere.com). The X700 series vary in price from $8759.00 on the low end to 12,279.00 on the high end (Deere.com). 2.7 Industry Analysis The current industry leader in robotic lawn mowers is Friendly Robotics, who has just under 50% of the market share by revenue (Business Wire, 2015). Husqvarna, Zucchetti Centro Sistemi, and Global Garden Products each share approximately 12.5% market share and the final 12.5% is distributed amongst other brands, such as John Deere (Business Wire, 2015). See Figure below 2.1 for a visual breakdown of the 2014 market share in robotic lawn mowers. Figure 2.7: Robotic Lawn Mower Market Share by Revenue 2014 (Business Wire, 2015) Friendly Robotics, (also called RoboMow) currently offers four robotic lawn mower options (Robomow.com). The least expensive Friendly Robotics mower, the RC306, costs $1,199.00 and is rated for a lawn up to .125 acres, while the most expensive version, the RS630 is priced at $2,099.00, and is rated for a 0.75 acre lawn (Robomow.com). All four Friendly Robotics lawn mowers offer a 1-year warranty, are electric powered, can be controlled from a smartphone application, and require in ground guide wires to operate (Robomow.com). The Friendly Robotics lawn mowers can be purchased directly from their website, or other websites such as Amazon.com. Sears is also listed as a dealer, but it appears to be online only, rather than available at a physical Sears store. Husqvarna also currently has four models of robotic lawn mowers (Husqvarna.com). The least expensive Husqvarna lawn mower, the Automower 315, has a MSRP of $1,999.95 and is rated for a 0.37 acre lawn (Husqvarna.com). The most expensive mower, the Automower 450X, MSRP of $3,455.95, and is rated for 1.25 acres (Husqvarna.com). All of the Husqvarna robotic mowers are electric powered, require ground guide wires, and some higher end models have an on-board GPS unit that helps with set up (Husqvarna.com). The mowers equipped with GPS can communicate with their owners per a SMS (using an installed SIM card), or an iPhone app (Husqvarna.com). The Husqvarna mower does not have any form of object detection or avoidance as a safety feature; however, it will automatically stop if it is lifted up or turned over (Husqvarna.com). The Husqvarna robotic mowers are sold through authorized Husqvarna dealers, of which there are approximately 176 located in Florida and spread throughout the state (Husqvarna.com).
  11. 11. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 6 Zucchetti Centro Sistemi, is an Italian company, who offers the greatest variety of robotic lawn mower options, at 15 models. The smallest model is the Ambrogio L30 Delux, and is rated for 0.2 acres, and is priced at $1447.83, using current exchange rates (listed at 1290 euros) (Ambrogiorobot.com). The largest model, the Ambrogio L400 Elite, is rated for 7.4 acres, and costs $21,313.43 at current exchange rates (it is listed at 19880.00 euros) (Ambrogiorobot.com). The higher end Zucchetti mowers do not require guide wires, as they function off of differential GPS, same as the MondoMower, while the lower-end models still require a guide wire. The Ambrogio lawn mowers are sold through authorized dealers. Zucchetti, does not currently have a large US presence, and as result the state of Florida does not currently have a Ambrogio dealer, with the closest dealer being located in Atlanta Georgia (Ambrogiorobot.com), which is approximately 230 miles north of Florida’s northern border. At this time The high-end Ambrogio models offer the most direct competition to the MondoMower, as they share similar features, such as a large lawn capacity and no guide wires required. Global Garden Products, like Zuccchetti Centro Sistemi is an Italian company, and has seven robotic lawn mower options, manufactured under its Stiga brand. The smallest model, the Stiga Autoclip 22 is rated for 0.2 acres, the largest model is the Stigia Autoclip 720 S is rated for 4 acres (Stiga.com). Stiga is currently only sold in Europe and the low end models sell for $1,700 and the large models $5500 (Stiga.com). The main advantage of the Stigia robotic lawn mowers is the ability to mow steep inclines, with some models advertising to mow a 50% grade, however this is on the smaller models, the largest model has recommended maximum slope of 35% (Stiga.com). The smaller models do not require a guide wire installation however require a closed in yard, and navigate by running into objects and turning around, the larger models require a guide wire. The company was taken over by lenders and underwent restructuring in 2010 (Horticulture Week, 2010). Several of its brands were sold in 2013, and the company has undergone four holding company changes in the last 10 years (Kleinman, 2013). Due to the financial restraints of the company it is unlikely they will enter the United States Market in the near future.
  12. 12. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 7 3.0 Marketing Planning 3.1 Marketing objectives The key to the marketing strategy is focusing on the cost- and time-saving benefits the MondoMower provides the target segments (golf course owners throughout the state of Florida). Through a combination of niche targeting, direct advertising, and holistic marketing, the company intends to achieve the following marketing objectives within one year of launching the MondoMower:  80% awareness: Gain brand and product recognition from 1,000 Floridian golf courses.  30% trial: Motivate 300 of the brand-aware golf courses to test the MondoMower or watch a demonstration (in person or online).  40% purchase: Convert 120 of the 300 trial users to purchase one or more MondoMowers.  9.5% market share: Ensure all 120 buyers receive the proper customer support to maintain or increase their usage of the MondoMower.  $6,000,000 in sales: Sell an average of 2.5 MondoMowers to each buyer and one warranty package to each buyer. There are an estimated 1,250 golf courses in Florida (Howard, 2016). Well-targeted digital and social media marketing actions, combined with an aggressive sales force approach, will be fundamental in achieving the lion’s share of the awareness objective for this market. Once members of the target market are aware of the MondoMower, the sales force team will be instrumental in promoting and coordinating trial use of the product, primarily to those who have expressed interest through online behavior, i.e., clicking on an advertisement, visiting the company’s website, or watching a demonstration video. TechnoLawn will base trial percentages on how many target consumers elect to postpone their current lawn maintenance procedures for a 30-day period. The purchase percentage will be calculated by taking the number of consumers who complete the 30-day trial period and then elect to buy the MondoMower, in addition to those who are aware of the product and purchase it without any trial use. With trial use and purchase, buyers will fully adopt the MondoMower, recognizing its utility and energized differentiation. Initial buyers will be identified as innovators and early adopters who can provide user testimonials. Word of mouth marketing; customer observation of the product in use; and video testimonials integrated into targeted online and mobile display advertising, search engine marketing, as well as owned (YouTube) and paid social media (Facebook and Twitter) advertising will serve as secondary associations in meeting the stated objectives. Sales projections within the first year launch of the MondoMower are based on basic mathematical equations constituting the respective variables and measureable objectives. These figures also assume each golf course will purchase, on average, 2.5 MondoMowers.
  13. 13. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 8 Number of Golf Courses in Florida: 1,250 Awareness Objective: 80% Trial Use Objective: 30% Purchase Objective: 40% Market Share Objective: 9.5% 1,250 (awareness objective) = 1,250 (.8) = 1,000 1,000 (trial use objective) = 1,000 (.3) = 300 300 (purchase objective) = 300 (.4) = 120 buyers 120 ÷ 1,250 = .096 = 9.6% market share a = number of buyers b = cost of MondoMower c = net sales revenue a (b) = c 120 (19,999) = $2,399,880.00 TechnoLawn recommends seven MondoMowers per 18-hole golf course. Considering a portion of golf courses are nine holes and that not all buyers will initially purchase multiple MondoMowers (they will purchase more over time as product believability and satisfaction rise), TechnoLawn forecasts 20% unit growth year-over-year as product believability and satisfaction rises. The initial market share results in sales revenue of: $2,399,880.00 (2.5) = $5,999,700.000. The purchase of product warranties will garner additional revenue gains. The following equation assumes 50% of the buyers purchase the $2,500 five-year service agreement (see Pricing section of Marketing Mix on p. 17 for more details). TechnoLawn anticipates the sales/warranty mix to continue through Year 1 to Year 3: Buyers (average number of mowers purchased per buyer) = Total number purchased 120 (2.5) = 300. Total number of mowers purchased (50%) = Total mowers with service agreement 300 (.5) = 150 Total mowers with service agreement ($2,500) = Total net sales revenue from warranties. 150 (2,500) = $375,000.000. Total Sales = $5,999,700 + $375,000 = $6,374,700.00. 3.2 Segmentation and Targeting At the initial launch period, TechnoLawn will target golf courses in the state of Florida with vast (three acres or more) greens to maintain. Geographic, economic, and psychographic characteristics, as well as various operating variables, purchasing approaches, situational factors, and personal characteristics helped TechnoLawn identify the appropriate number and nature of segments to target in this niche market. Additionally, each of the potential buyers that
  14. 14. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 9 make up the target market are: 1) measureable in size and purchasing power; 2) large and profitable enough to serve; 3) accessible from a marketing and selling standpoint; 4) exhibit distinguishable needs and characteristics than other businesses with lawns to maintains; and 5) able to become aware of, purchase, and use the MondoMower. Firstly, TechnoLawn saw a gap in the robotic lawn mower product category in that it primarily caters to smaller (one acre or less) residential lawns. One exception—and a direct competitor— is the Zucchetti Ambrogio L400 Elite, which can mow lawns up to 7.4 acres in size; however, there is not currently a Zucchetti salesforce presence in Florida. Along with there not being steep direct competition in Florida, the subtropic climate supplies a need for year-round lawn maintenance. The “sunshine state” is the most popular golfing spot in the U.S., as evidenced by the proliferation of Americans and foreigners who visit the peninsula panhandle more than any other state in search of tropical conditions and lush fairways (see Figure 3.2 in Appendix for economic output). TechnoLawn chose to market the MondoMower specifically to golf courses in Florida for reasons that go beyond their conducive geographic and economic dimensions. Businesses operating at the scale of golf courses have their own brand image to uphold. They understand that the exterior appearance of their service is a tangible variable customers will consider in terms of perceived quality and satisfaction. Thus, well-maintained fairways and surrounding green areas are critical to maximizing brand equity. However, golf courses and resorts at the highest level may feel the only viable option is to invest in a team of groundskeepers who can provide the optimal care needed to maintain a pristine and virtually flawless lawn. Brand image is often a direct correlation of buying behavior. Top decision makers of well- established golf courses seek to buy solutions to their business's economic and strategic problems, while also aiming to suffice their own personal needs and rewards (Kotler and Keller, 2010). They see the need for maintaining aesthetically attractive lawns, with reliability, quality and price (value) being of utmost importance. The MondoMower is not only a durable, safe, and dependable solution for meeting such needs; it will also be a more cost-effective one in the long-term. The added warranty and technical/customer service offerings will create an even more compelling customer value proposition. One additional benefit the target market may be seeking or will find attractive is the MondoMower’s ability to reduce negative environmental consequences. One hour of gas- powered lawn mowing produces as much pollution as four hours of driving a car (National Geographic, n.d.). Realizing the increasingly important role environmental issues are playing in businesses’ purchasing decisions, the MondoMower was designed to run on 100% electricity to eliminate any smog-forming emissions. Additionally, the very fine clippings the device continuously trims from the tips of the grass burrow into the turf and then easily decompose to feed the lawn. This can reduce the need for chemical fertilization and even reduce watering requirements. 3.3 Positioning The key dimensions that give the MondoMower a distinctive position in the marketplace include endurance and durability, economic power, intuitive functionality, and unique safety features. More specifically, the MondoMower can mow large lawns efficiently; reduce environmental and financial costs generated from gas-powered lawn mowers and their operators; navigate its way around a designated green area using integrated GPS to achieve the
  15. 15. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 10 highest quality cutting result; and stop the plastic string blade from spinning if it detects an object in its path. TechnoLawn will position the MondoMower as a premier self-operating lawn mowing device trusted for safely, efficiently, and economically maintaining large commercial lawns. This will be achieved by leveraging the MondoMower’s competitive advantage: high operating power, intuitive functionality, and unparalleled safety features.
  16. 16. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 11 4.0 Marketing Mix 4.1 Product 4.1.1 Description MondoMower is an autonomously operated lawn mower that uses an electric engine powered by a Li-ion battery. It navigates using an onboard GPS receiver. During initial setup the MondoMower will create a GPS generated “Yard Map” that will demarcate boundaries, paved areas, flower beds, trees, bunkers and any other areas that will not be mowed. The MondoMower will use the Yard Map to autonomously mow the lawn while avoiding all obstacles. The MondoMower is extremely safe due to a laser based obstacle avoidance system and the use of plastic wire blades instead of solid metal blades. The obstacle avoidance system allows the MondoMower to detour around unexpected obstacles like large branches, tools, and even animals or people. The plastic wire ensures that even if the MondoMower drove over an obstacle both the mower and the obstacle would be safe from serious damage 4.1.2 Key Features Environmentally and economically efficient: The MondoMower utilizes a lightweight and efficient electric motor that is emission free and cheap to power. It limits environmental impact and significantly lowers operating costs. Over its ten year lifecycle the MondoMower can provide turf maintenance at a cost of only $3.33 per acre. Conventional turf maintenance in Florida costs $8.43 per acre at current wage and fuel prices. GPS guided navigation: The MondoMower creates individual Yard Maps for each mowing surface. Upon activation, the MondoMower uses the charging station location as a reference point to begin cutting the grass. There is no need for expensive and time consuming wire emplacement which is used in most other autonomous mowers. Each MondoMower is able to record up to twenty yard maps. Obstacle avoidance: The MondoMower uses a laser based obstacle avoidance system. If the MondoMower detects an unexpected obstacle in its path it automatically reroutes to avoid damaging property or injuring people or animals. Safety: In addition to the MondoMower’s innovative obstacle avoidance system the mower utilizes plastic line instead of a potentially hazardous metal blade. Even if MondoMower did run over an obstacle both the object and the mower would not be heavily damaged. MondoMower’s string line cuts through and around small objects without dulling or damaging expensive blades. Automatic charging: The MondoMower automatically returns to its charging station when the battery dips below 10%. When it is recharged it will continue mowing. The battery takes approximately one hour to recharge and can mow for one hour on each charge. Smartphone Mobile Controls: Start, Stop, or Park MondoMower using a smartphone application. In case of theft or tampering MondoMower will send an alert directly to a mobile device. Convenience: Program your MondoMower to mow at the time of your choice; times when a loud conventional mower would disturb guests. Mow at night or during non-peak hours.
  17. 17. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 12 Longevity: Each MondoMower is expected to last up to 10 years of daily use if properly maintained. The most vulnerable component is the battery which during the mower’s 10 year life cycle will likely need to be replaced. The cost of replacing a battery was considered when pricing the warranty program. Service and Support: MondoMower’s dedicated website and social media presence will provide in depth setup and troubleshooting instructions and videos. The warranty and service program ensures timely and cost effective repairs when MondoMower does need expert repair. 4.1.3 Specifications Dimensions: 36”L x 22”H x 26”W Cutting Width: 24 inches (60.24 cm) Weight: 30 lbs. (13.6 kg) Avg. Charging Time: 90 minutes Avg. Running Time: 60 minutes Avg. Speed: 3.0 mph (4.8 kph) Avg. Acres/hour: 0.625 acres (0.25 hectares) Avg. Acres/week: 15 acres (6 hectares) Figure 4.1.3 Specifications Setup: 1. Setup Charging Station: Setup MondoMower’s charging station outdoors near the edge of the mowing surface on flat ground with some space around it. The MondoMower will automatically return to this location when it has completed mowing or when it needs to recharge its battery. 2. Charge: Charge the battery (about 80-100 minutes) and install the removable push handle. 3. Initialize: Turn on the MondoMower and allow 1-2 minutes for the machine to initialize and establish GPS connectivity. 4. Establish the Boundaries: Using the keypad, select “Create Yard Map”. When prompted to do so, push the MondoMower around the perimeter of the mowing surface as if you were operating a traditional walk-behind mower. Ensure you follow the exact path you want the mower to use. After you have walked the entire perimeter push “Perimeter Complete” on the keypad. 5. Mark Additional Obstacles: After you push “Perimeter Complete” you will be prompted to select “Mark Additional Obstacles”. Select this and then push the MondoMower to each tree, bunker, or other obstacle. At each obstacle place the left, front, wheel against the obstacle and select, “Mark Obstacle”. When you have marked every obstacle in your yard select, “Obstacles Marked,” then “Yard Map Complete”.
  18. 18. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 13 You have now successfully created your Yard Map that the MondoMower will use to navigate the mowing surface. 6. Return to Charger: Return the MondoMower to the charging station and turn it off. If you are ready for the MondoMower to mow the yard turn it back on and select “Autonomous Mow”. The mower will begin mowing the lawn on its own once it has GPS connectivity. Remember, the mower must be turned on and set to mow from the charging station because the charging stations is the MondoMower’s reference point for the Yard Map. If you move the charging station, you must establish a new yard map. 4.1.4 Life Cycle MondoMowers represent an innovative and disruptive change to how golf courses and potentially all lawns are maintained. Both this product and the product category are just beginning the growth phase. Any entrant that gains early market share will have control of a product category with extremely high growth potential. As with any game changing product, the largest obstacle to broad adoption is demonstrating their effectiveness. Initially, sales will be slow because few groundskeepers will want to be the first to make the large initial investment. However, new golf courses or those looking to replace existing mowers will be tempted by the cost savings MondoMower offers. Early sales will not be for multiple units. Customers will want to buy one or two units in order to test their effectiveness before converting an entire mowing fleet. In the first year sales will be low but over time existing customers will buy additional units and other courses will choose MondoMower after they see its success. In short, autonomous mowers make sense and the first entry that can demonstrate effectiveness to the target market will gain huge growth opportunities. If MondoMowers are able to demonstrate quality and reliability to golf course managers and customers, then TechnoLawn products will become the most known and trusted brand in autonomous mowers not just for golf courses but also for residential use. 4.1.5 Competitive Advantages: MondoMowers possess numerous points of difference that create a competitive advantage over other autonomous mowers and conventional riding mowers. MondoMower is the first autonomous mower designed for commercial use available in the United States. It is larger than other autonomous mowers, capable of mowing up to fifteen acres per week. It’s onboard GPS allows the MondoMower to navigate without the use of wires. Laying wire around every perimeter and obstacle would be impractical for any golf course. MondoMower is also safer than other autonomous mowers due to its obstacle detection laser and use of plastic wire instead of metal blades. Safety is important with any mechanical device but is crucial when being used in public spaces. MondoMower’s mowing capacity, unique navigation system, and industry leading safety features make it the only reasonable choice for golf courses or other large, public spaces but Mondomower also has many advantages over conventional riding lawnmowers. MondoMowers can complete turf maintenance at nearly half the cost of manually operated riding lawn mowers. Autonomous mowers, like MondoMower, cost more initially but have far lower operating costs, essentially only the cost of electricity and cutting line. Choosing an autonomous mower reduces the risk of increases labor or fuel costs to businesses. MondoMower is also able to maintain turf at night or during non-peak hours. Golf course patrons will not have loud, smoke-emitting, lawnmowers disturbing
  19. 19. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 14 their game. Finally, autonomous mowers like MondoMower are far more environmentally friendly than equivalent gas powered lawnmowers. Choosing a MondoMower contributes to a sustainable golfing experience that many courses and their customers want to create. 4.2 Promotion Advertising Objectives Advertising objectives for the MondoMower are centered on the pillars mentioned below. Establishing a need for the category The main need for the category is the cost saving over a period of time. A clean and well- manicured lawn and course is a necessity for a golf course. While golf courses can outsource the job to mowing companies, there is still a major cost overhead associated with it. We have established previously, that the cost for mowing a lawn is $8.43 per acre. Many golf courses are currently struggling to maintain profitability. Over time, the MondoMower reduces the cost to only $3.33 per acre - that’s a 60% reduction over time. MondoMower’s laser based obstacle avoidance technology and wire cutting blades are significant points of differences, enhancing safety and a cleaner cut than in any other competitor machine. Creating Brand Awareness Creating brand awareness will be the key for MondoMower’s success. For creating brand awareness, MondoMower will use a multi-pronged approach. The first step will be getting the word out about the product. The initial plan is to garner support from the tech community. Great testimonials for the product will go a long way in winning purchaser confidence and creating the word of mouth buzz. Tech Shows and Local Florida Exhibitions: MondoMower will be demonstrated at tech shows and local trade shows such as Florida’s Orange County Home and Garden show. Consumer Electronic Show will be a platform for the demo of the lawn mower. “Robobusiness” is another tech show focused at the “cutting edge of robotic investment, innovation and adoption”. MondoMower will be showcased in the exhibition. Florida hosts several golf shows “to provide a forum for the display, exhibition and sale to the consuming public of golf related merchandise, goods and services.”. MondoMower will be registered in all these local events. Reviews from reputed organizations: Free trial units will be sent to some reputed consumer and robotics review forums for feedback and review. Consumer Forum already has a current section on robot lawn mowers, however the market so far has focused on the residential lawn mowers. With MondoMower’s business appeal, a separate segment can be expected for MondoMower. Good reviews from Consumer Reports will go a long way in the product launches and future brand extension. Other organizations, such as “Robotics Business Review” will also be approached for trial runs and reviews. A functional and attractive website A functional, simple yet attractive website will be highly significant for MondoMower’s initial marketing campaign. Customers will need to be able to locate the product, sales and support information at a glance.
  20. 20. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 15  The home page will feature the video of MondoMower mowing a golf course with a voiceover explaining the MondoMower features.  The point of differences will be featured on the first page.  Other pages will be built for detailed product specifications, cost, and contact details  Promotions will be advertised on the website in the “Sales” tab  Testimonials from consumer reports and other curators will be featured  Sections for consumer reviews and feedback will be added to the testimonials page  Page for Frequently asked Questions will be present  User community interaction will be encouraged through Facebook  E-commerce and Online Ordering will be added as later phases. (See Figure 4.2.1 in Appendix B) Search Strategy Paid advertisements and users clicking on links to MondoMower’s website through Facebook and Search Engines will be targeted. Facebook Marketing Aggressive Facebook Marketing will be used to spread the word about MondoMower. Clicks to Website campaigns with Link Clicks will be utilized Brand Awareness Objective will be selected with Facebook automatically bidding for us. Google Ad Search Companies such as WordStream will be used to manage the keyword search program for Google with the intent of showing MondoMower as one of the top links for the keywords such as “robot” “autonomous” “lawn” “mower” “golf” “Florida Golf Course” Influencing Purchase Intent A mix of social media, online, and print targeted advertisements will be used to advertise and market MondoMower. Using Social Media A Facebook page will be created for MondoMower. A video of the MondoMower cutting a lawn will be featured as the initial advertisement. To get the video, a camera can be mounted on the MondoMower while the mower is in action. Comments and discussion will be encouraged and over time a useful community of autonomous lawn mowers are expected to join in the discussion. Posts of recent advancements in autonomous lawn mowing techniques will be provided and MondoMower’s Points of Difference and Parity with competing brands will be discussed. Surveys will be posted on Facebook to gauge interest in the autonomous lawn mowing category for both residential and business needs. The survey results along with other market research can impact future brand extensions. YouTube Videos will be inserted into YouTube showing the MondoMower in action. Videos will be updated regularly and specifically testimonials from clients will be used in the videos. Every effort will be made to have different videos in the different networking platforms to keep up the consumer interest and reduce any monotony. Promotions and bundles will be mentioned in the video and at some regular intervals specific Promo Codes will be shared in YouTube videos for
  21. 21. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 16 existing customers and new customers. Promo Codes can be for extended service bundles or for future purchases. Print Ads: Print Ads will be featured in Golf Magazines and Local Florida newspaper “Sun Sentinel” in the Sports Section The ads will feature the robot mower and the PODs and the contact information. Frequency – Every Friday and Sunday for one year Size of Print Ad: Quarter Page Sales Force The Sales Force will be the key for MondoMower’s success. A team of 4 sales representatives will be used for the Florida Region. Two team members will target the east coast and two will be shared between the central and the west coast. To optimize travel costs, employees will be selected from the regions they are responsible for. Sales Force will target customers who have shown interest in the product, either by clicking on the links to the website, who have watched any trial video, been to MondoMowers booths at the different trade shows or contacted MondoMower directly, reference Figure 4.2.2 in Appendix B for an example sales brochure that will be distributed by the sales for to potential customers. Word of Mouth During start up, promotional campaigns will be launched 2 times a year for existing customers for “Bring a Friend” initiative, where for every referral an existing customer provides, they will receive a 5% discount for the next two MondoMowers bought within the next two years. The friend referred to will receive a 5% discount if they buy 2 or more MondoMowers. Word of Mouth marketing is expected to have a big impact on MondoMowers sales growth To Stimulate Trial Use MondoMower expects a 30% conversion for trial use by the target segment. Specially trained sales force and support personnel will be available for sales and support questions. Providing exceptional service will be the key for MondoMower’s adoption. Justifying the Marketing Mix Initial target market for Mondo Mower are golf courses. MondoMower is expected to have a market leader advantage in the B2B space. Keeping this in mind, the marketing mix is geared towards businesses. With an 80% awareness objective in a targeted and localized market such as MondoMower’s, expensive mass marketing techniques such as TV ads and endorsements are not necessary. The marketing objective for MondoMower is to get the word out, establish the need and build brand awareness. Hence local establishments such as local golf shows will be a prime target. Spreading the word about MondoMower through tech shows will also be an immediate way of gauging consumer interest. Initially direct marketing to golf courses will be heavily relied on and will be the most efficient marketing technique for this niche category. Facebook pages and twitter handles will also be used to gauge and improve customer engagement.
  22. 22. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 17 Promotion Costs for the first year  Facebook Advertising and Google AdWords and maintenance: $50,000  CES Launch and review forums, including travel, trial units: $80,000  Sponsorships and demos at local golf shows $60,000  Website, YouTube and other Facebook pages and maintenance: $20,000  Print and other advertisements: $50,000  Coupons and Promotions: $50,000 4.3 Distribution TechnoLawn will use a direct distribution strategy, acting as the wholesaler and retailer. TechnoLawn will outsource the final assembly, and projects to purchase each MondoMower for $10,000 (reference Section 4.4 for a breakdown of costs). By employing a direct sales staff, and selling directly to golf courses, TechnoLawn avoids the expense of training and informing retailers on all the benefits and features of the MondoMower. By having a tight control on over the distribution chain, TechnoLawn can exert more control over the brand’s image, and ensure consistent and high levels of service. TechnoLawn will plan to have 10 units on hand at all times. With TechnoLawn advising 7 MondoMowers per 18-hole golf course, the 10 units will allow MondoMower outfit a 18 hole golf course while still having 3 units on hand for trial and warranty purposes. Online Sales orders will not be accepted initially however registration for knowing more about the product will be allowed online and our sales force team will reach out to the interested parties promptly to service their questions. 4.4 Price 4.4.1 Pricing TechnoLawn will follow a market penetration strategy when it comes to the price of its product. The MondoMower will have a base retail price of $19,999. This is cheaper than its direct competitor, the Zucchetti Ambrogio, which is listed at about $21,300. It is also within the price range of conventional gas-powered lawn mowers that are currently used by most golf courses which generally run between $15,000 and $20,000. This is a good price for the MondoMower for a few reasons. The first is that it will allow for a decent profit margin. The second is that its value will be attractive to many of the golf courses located in Florida. The MondoMower will cost nearly $10,000 to produce (Figure 3.4.1). This will be due to a few fairly expensive, yet necessary, components. The powerful lithium-ion battery pack alone will cost $2,565 and the differential GPS system will cost around $400. TechnoLawn will lower its variable costs by finding a mass supplier of all components, which will total about $6,000. Beyond the individual pieces, production will cost another $4,000. Since the entire mower will be able to be produced for $10,000, the profit margin will be around 50%. This will be enough to cover sales commissions and overhead costs that will accompany the startup of TechnoLawn. The golf course industry in Florida will also find the price to be attractive. A conventional commercial mower with a 72” deck can mow 2.5 acres per hour if it is travelling at 4 miles per hour. This will allow a rider to mow about 100 acres each week. The average mower earns $11.57 per hour. With the cost of the mowers, gas, labor, and maintenance, the cost of mowing each acre is $8.43. Although the mower will be autonomous, it will still require some attention from the golf course employees. It can be estimated that around $600 of labor will be spent by the golf
  23. 23. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 18 course on each MondoMower per year for routine maintenance. The majority of maintenance will be from the recommended weekly cleaning. The mower should last 10 years and will be capable of mowing 15 acres per week. This means that the MondoMower will cut costs from $8.43 per acre to only $3.33 per acre mowed for the average golf course (Figure 3.4.2). 4.4.2 Discounts and Special Deals Since each mower would be able to mow about 15 acres per week, and each golf course is around 100 acres, some courses will want upwards of seven MondoMowers. In order to further appeal to the golf course industry, TechnoLawn will offer a variety of MondoMower packages. They will include bundles of one to nine mowers in increments of two. Each bundle will reduce the retail price of each mower by 2%. For example, the three-mower bundle will include a 2% discount, and the five-mower bundle will include a 4% discount. While TechnoLawn expects each golf course to purchase an average of 2.5 mowers, the discounts will remain appealing for those who wish to purchase the entire fleet at once. Each bundle offered will include a two-year warranty that will cover faulty batteries and other mechanical parts. Additionally, a five-year service agreement will also be available for $2,500 per mower. This agreement will require TechnoLawn to perform yearly inspections on each MondoMower and replace any damaged mechanical or cosmetic parts found. Some periodic promotion campaigns will be held and coupon codes through watching advertisements on YouTube and other websites will be provided. Most of these campaigns will be targeted towards incentivizing future purchases.
  24. 24. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 19 5.0 Implementation & Control of the Marketing Plan TechnoLawn will begin investing in product development and market research at the beginning of January, 2017. These activities will proceed throughout the first and second year, concluding in May of 2018. Brand development will begin in February and will need to be completed by the end of the year. The company will need to have its corporate strategy and brand identity set in stone before it contacts any consumers. May of 2017 will mark the beginning of another major development period for TechnoLawn. The company will begin developing a user friendly website, which will be completed by the end of the first year, and will also begin working on public relations. To complement the website, TechnoLawn will begin working with social media. A Facebook page will allow interested customers to keep up with the developments within the company, and a YouTube page will allow the customers to see how the MondoMower works. Most importantly, TechnoLawn will begin hiring and training its sales representatives. This process should last about six months and will result in 29 well-trained sales representatives that will travel around Florida to pitch MondoMower to golf courses. Finally, TechnoLawn will begin investing more heavily into advertising at the beginning the second year. This will include a wide range of advertising methods, from social media to printed ads. TechnoLawn will also begin taking orders and manufacturing MondoMowers at this time. Figure 5.1 Implementation and Control Calander
  25. 25. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 20 6.0 Summary Autonomous mowers are a latent demand of U.S. consumers that has potential for years of high growth. The first brand that can demonstrate effectiveness and reliability can stake a position of long term profitability in a new consumer category. TechnoLawn’s market entry strategy is to dominate the niche market of the most discriminating consumer of lawn maintenance products, golf courses. By proving that MondoMowers can maintain high quality turf efficiently, safely and reliably, TechnoLawn will become the brand of choice for lawn maintenance professionals and eventually residential customers. The MondoMower includes many features that give it advantages over competing products. Currently, there are no autonomous mowers sold in the U.S. that have the capacity, flexibility, and endurance for commercial use. Existing products are designed for the residential market but have not gained popular acceptance. The MondoMower includes many key features that optimize it for golf course use. One, it is guided by GPS not underground wires. All competing products require wires to be emplaced around all boundaries. Wire and its installation are exceedingly expensive on a 100 acre golf course and would require regular maintenance. Secondly, the MondoMower is a market leader in safety; using lasers to detect obstacles and plastic wire to cut the grass as opposed to potentially dangerous metal blades. No competing autonomous mower incorporates these features. Safety is an extremely important selling point for a product that is unproven in the eyes of consumers especially those buying the product for use in public places. MondoMower’s strong safety features and liability protections will increase trust in our product and the likelihood that decision makers will make the leap to autonomous lawn care. MondoMower also outpaces conventional lawnmowers in many key factors, most importantly, cost. Although the initial purchase price of MondoMower is higher than most professional lawnmowers (MondoMower retails for $19,999 while similar quality gas mowers cost $15,000 to $18,000) the costs to operate autonomous mowers is much lower. On average, commercial riding lawn mowers at current wage and fuel prices will cost $8.43 per acre. This includes the cost of machinery, maintenance, wages for the operator, and fuel costs. MondoMowers in contrast cost only $3.33 per acre even with the additional cost of the warranty package. Furthermore, the cost of autonomous lawnmowers is far more predictable than fuel and labor costs which increases cost incentives to purchase MondoMowers. Financial costs are not the only considerations for businesses. Autonomous mowers are far better for the environment than gas alternatives because they are emission free. They will not disturb guests with noise because they are much quieter than gas mowers. Choosing MondoMowers can help a course brand itself as an industry leader in both sustainability and technological innovation. TechnoLawn’s marketing strategy for MondoMowers is to first create demand for the product then using word of mouth, direct observation, and social media to brand MondoMower’s as the both the premier autonomous mower and a reasonable alternative to a riding lawnmower. Focusing on the golf course niche will not only generate long term profits in professional turf maintenance but will also give the product exposure to the target demographic of future residential models. Smaller versions of MondoMowers will appeal to upper middle class, male, homeowners who are looking to save time and effort on lawn maintenance. In the past many of these customers would settle for small riding lawnmowers but TechnoLawn can provide a lucrative alternative. Both businesses and private customers will be reluctant to purchase a product as innovative as MondoMowers without first seeing it in action. By focusing initial efforts in one state, in one niche market, TechnoLawn can ensure a well-trained and attentive sales staff. TechnoLawn staff will be able to provide maintenance service, rapidly repaid malfunctioning units, and assist in the design
  26. 26. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 21 and setup of complete autonomous turf care systems. Establishing TechnoLawn as the choice of professionals will not only create a profitable niche but will also lend credibility to future products that are geared for residential use. Overtime MondoMowers can move beyond Florida into Georgia, the Southeast, and eventually throughout the United States. It can dominate the professional autonomous mowing market and use its status as an industry leader to expand into residential sales with smaller models.
  27. 27. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 22 APPENDICES
  28. 28. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 23 Appendix A: Marketing Planning
  29. 29. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 24 Appendix B: Marketing Mix Figure 4.2.1 Website Example
  30. 30. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 25 Figure 4.2.2 Sales Brochure Example
  31. 31. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 26 Figure 4.4.1 Production Costs Figure 4.4.2 Cost Per Acre Comparision
  32. 32. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 27 Appendix C: Financials Illustrated below is represent TechnoLawn initial proforma income statement for Pre-Launch through Year 3. Forecasted income figures are represented before the effects of interest, depreciation, and tax.
  33. 33. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 28
  34. 34. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page- 29 Appendix D: Market Research Marketing research was conducted using primarily secondary data. Syndicated-service research firms, such as The Freedonia Group as well as Research and Markets were used to evaluate the market for robotic lawnmowers. Freedonia provided insight into the market size of $10 billion and a steady market growth of around 3.2% for through 2019. Freedonia also indicated that a significant portion of the market (38%) was located in the southern United States. Freedonia also provided insight into the faster growth of the commercial sector over the retail sector and that the sales of robotic lawnmowers were projected to triple by 2019. Research and Markets provided insight into the U.S. share of the total world market at 50%. Business Wire was used to do an industry analysis, which determined the current market share held by each of the robotic lawn mowing companies (Reference Figure 2.6 in Section 2.). Once the current market leaders were defined, their company websites were primarily used to gather data on their product offerings. Secondary data was also used to evaluate the potential markets. The U.S. Census website was used to view population trends in the state of Florida. Travel websites were used to determine the number of golf courses in Florida, as well as to investigate other potential markets, such as hotels. Additionally, the U.S. Census and the travel websites were used to ensure a positive population and visitor trend to Florida, indicating an expanding market. Internet sites such as Indeed.com and GovDocs.com where used to analyses the current labor rate trends in Florida.
  35. 35. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page 30 REFERENCES Applebome, Peter. "Golf Courses: A Gold Mine for Lawsuits." The New York Times. The New York Times, 22 Dec. 2010. Web. 27 Apr. 2016. http://www.nytimes.com/2010/12/23/nyregion/23towns.html Hicks II, Rob Warren and Hall, Ernest L. “A Survey of Robot Lawn Mowers, “ Proc. of the SPIE Intelligent Robotics and Computer Vision Conf., Nov. 8-9, 2000, Boston, MA. https://www.researchgate.net/publication/235679799_A_Survey_of_Robot_Lawn_Mowers Howard, Blair. "Florida's Top Golf Courses and Resorts." About.com Travel. 24 Jan. 2016. Web. Kleinman, Mark. "Banks To Prune Stake in Lawnmower Maker." Sky News. 8 Mar. 2013. Web. 27 Apr. 2016. http://news.sky.com/story/1061902/banks-to-prune-stake-in-lawnmower-maker Kotler, Philip, and Kevin Lane Keller. Marketing Management. Upper Saddle River, NJ: Pearson Prentice Hall, 2010. Print. Loomer, Jan. "Facebook Ads Bidding Changes: Optimization, Charging and OCPM - Jon Loomer Digital." Jon Loomer Digital. 24 Nov. 2015. Web. 29 Apr. 2016. http://www.jonloomer.com/2015/11/24/facebook-ads-bidding-changes/. Louis, DeVoto J. "“Injury On the Golf Course: Regardless of Your Handicap, Escaping Liability Is Par for the Course." The University of Toledo Law Review 24.4 (1993). Web. 26 Apr. 2016. http://www.ngcoa.org/infocentral/applications/DocumentLibraryManager/upload/University%20of%2 0Toledo%20Law%20Review%20Errant%20Balls.pdf Neff, John. "Asimo Has a Friend! Honda Debuts Miimo Robotic Lawnmower." Autoblog. 21 Aug. 2012. Web. 27 Apr. 2016. http://www.autoblog.com/2012/08/21/asimo-has-a-friend-honda-debuts-miimo-robotic- lawnmower/#slide-184295 Peterson, Hayley. "McDonald's Shoots down Fears It Is Planning to Replace Cashiers with Kiosks." Business Insider. Business Insider, Inc, 06 Aug. 2015. Web. 27 Apr. 2016. http://www.businessinsider.com/what-self-serve-kiosks-at-mcdonalds-mean-for-cashiers-2015-8 "Climate Florida." Us Climate Data, 2016. Web. 27 Apr. 2016. http://www.usclimatedata.com/climate/florida/united-states/3179 "Florida 2016 Minimum Wage Falls Flat - GovDocs." GovDocs. Web. 27 Apr. 2016. http://www.govdocs.com/florida-2016-minimum-wage-falls-flat/ "Florida Estimates of Population." Bureau of Economic and Business Research, College of Liberal Arts and Sciences, University of Florida, 1 Apr. 2015. Web. 26 Apr. 2016. http://edr.state.fl.us/Content/population-demographics/data/PopulationEstimates2015.pdf "Florida QuickFacts from the US Census Bureau." United States Census Bureau. Web. 27 Apr. 2016.
  36. 36. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page 31 "How Does Spending Money on Facebook Ads, Instagram Ads, and Audience Network Ads Work?" Facebook.com. Web. 29 Apr. 2016. "How Costs Are Calculated in AdWords." - AdWords Help. Web. 29 Apr. 2016. https://support.google.com/adwords/answer/1704424?hl=en. "How Much Does Google AdWords Cost?" Internet Marketing Software. Web. 29 Apr. 2016. http://www.wordstream.com/blog/ws/2015/05/21/how-much-does-adwords-cost. "IRobot, Husqvarna, and Maytronics Lead Respective Segments in Robotic Home Care / Lawn Care Marketplace, According to ABI Research." Press Release Distribution, EDGAR Filing, XBRL, Regulatory Filings. Business Wire, 18 Feb. 2015. Web. 27 Apr. 2016. http://www.businesswire.com/news/home/20150218005911/en/iRobot-Husqvarna-Maytronics-Lead- Respective-Segments-Robotic "Lawn Maintenance Salary in Florida.” Indeed Web. 27 Apr. 2016. "Lenders Take Control of Lawnmower Firm Global Garden Products in Debt Restructure." Horticulture Week, 10 Mar. 2010. Web. 27 Apr. 2016 http://www.hortweek.com/lenders-control-lawnmower-firm-global-garden-products-debt- restructure/turf/article/989140 "Mowing Your Florida Lawn.". University of Florida, 2015. Web. 27 Apr. 2016. Https://edis.ifas.ufl.edu/lh028 "Research." Visit Florida. 2016. Web. 27 Apr. 2016. http://www.visitflorida.org/resources/research. "RoboBusiness 2015." RoboBusiness 2015. Web. 29 Apr. 2016. "Robomower Model History." Probotics.com. Web. 27 Apr. 2016. http://www.probotics.com/robomower/model-history.htm. "Robot Lawn Mowers Put to the Test." Consumer Reports Video Hub. Consumer Reports. Web. 29 Apr. 2016. <http://www.consumerreports.org/cro/video-hub/featured/featured-videos/robot-lawn- mowers-put-to-the-test/17387256001/4454627767001/>. "Robotic Lawn Mowers – Robomow." Friendly Robotics. Web. 27 Apr. 2016. http://usa.robomow.com. "Robotic Lawn Mowers." Husqvarna. Web. 27 Apr. 2016. http://www.husqvarna.com/us/products/robotic-lawn-mowers. "Robot Mowers." Stiga.com. Web. 27 Apr. 2016. http://www.stiga.com/products/stiga_en/robot-mowers.html.
  37. 37. GRBA 813 Team Spotify: Marketing Plan: MondoMower Page 32 "Power Lawn and Garden Equipment Market in the US 2015-2019." Research and Markets, June 2015. Web. 27 Apr. 2016. http://www.researchandmarkets.com/research/p9hnmt/power_lawn_and. "Power Land & Garden Equipment" The Freedonia Group - Industry Market Research - Market Size, Market Share, Market Leaders, Demand Forecast, Sales, Company Profiles, Market Research, Industry Trends and Companies. The Freedonia Group, Dec. 2015. Web. 27 Apr. 2016. http://www.freedoniagroup.com/DocumentDetails.aspx?ReferrerId=FG-01. "Select a Product Golf and Sports." John Deere. Web. 29 Apr. 2016. https://configure.deere.com/cbyo/#/en_us/products/golf_&_sports "Sponsored Links in Google: How to Get Your Ad in Google's Paid Links." Wordstream Web. 29 Apr. 2016. <http://www.wordstream.com/sponsored-links-google. "Topic: Golf." Statista. 2016. Web. 22 Apr. 2016 http://www.statista.com/topics/1672/golf/

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