Final Presentation - Marketing 20100

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Acted as captain for semester long project as seen on Resume. Our final presentation of this project was done in front of senior managers of local and national companies.

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  • Here are the strategies that we set up to strive towards the achievement of the secondary goals which will lead us to achieving the primary goals of attaining 10million in sales, maintaining 40% profit margin while developing a brand name recognition. The first three strategies tie together since they all are regarding towards maintaining superior brand name with strong patents and substantial differential advantage. Maintaining differential advantage will allow SAFE Air, Inc to break into oligopoly through its life cycle. Lastly, SAFE Air, Inc. will anticipate the responses from the competitors and counter attack properly by staying ahead of the game. With strong product plan, SAFE Air, is more than certain that proper timing of releasing the products will outdo any of the competitors’ reponses.
  • Here are the selected scores from the researches done in competitive product analysis, trend analysis and what’s wrong list. SAFE Air, Inc. believes that these are the areas where Fresh-it would out do its competitors without difficulty and furthermore, where the customers will be attracted to Fresh-it. As it is shown, Fresh-it already has superior position in all the categories, especially in Trend scores as it outdid every competitors. However, it is extremely important to maintain differential advantage over the product lifecycle and stay ahead of the game. We will explore how the SAFE Air, Inc. will win throughout the life cycle in upcoming slides.
  • Here is the Fresh-it’s life cycle with the product plan. First, the product will be accompanied with added scents. These scents will allow fresh-it to step over the competirtion in only area where competitors might had advantage over SAFE Air; which is the fact that they smell good. Scents : Green, Aromatherapy Second, improve what’s wrong score of infrequent change of refills Third, is very important stage of the life cycle eventhough the added features is simple. This simple addition will separate Fresh-it from the competitors once again and put the product in the area of digital product. This innovation will lead Fresh-it over the fall out stage. Fourth, UV light purification.will ensure the users that whatever is left in the toilt wil be certainly eliminated, which will increase the physiological needs and the product score. Lastly, the SAFE Air, Inc. will put the nail in the coffin by integrating Fresh-it to the entire household. It will become a entire household product to keep the air clean Inside the house. Furthremore, the digital display will not only show the time and filter life, but it will show the % of germs killed in the household and how clean the house is.
  • 1.) Sell Fresh-It to attract and retain consumers in order to keep increasing sales. Will use a price flexibility analysis to develop a range of prices that SafeAir could reasonably charge, and is primarily based on the differential advantage that Fresh-It holds over its competitors. 2.) Break-even analysis will be used to determine the break-even point of the Fresh-It product. A main goal is to break-even within the first year, and as you will see, SafeAir will accomplish this through sales over $10 million and a high profit margin 3.) Protect the equity of the Fresh-It brand by creating consumer awareness and popularity with our product. Strategies 1.) Due to the affluent nature of our target niche (gym mothers) we will be able to utilize skim pricing in order to yield higher revenue and break-even sooner 2.) Use the pull marketing strategy to effectively advertise to customers through retailers, create hype about our product, and pull them into purchasing the Fresh-It. 3.) Most importantly, we want to create “value in use” with the Fresh-It. Relative to competitive products, the Fresh-It should be effective, yet at the same, provided at a reasonable price.
  • In determining a reasonable price range that Safe Air could charge, Fresh-It’s significant differential advantage was taken into cnosideration. Although Freshmatic is in the air freshener industry, it doesn’t possess the technology/innovation and high value in use that the Fresh-it possess. Resultantly, SafeAir can reasonably charge a higher price. Although Miracle Seat serves a similar function of eliminating bathroom odors and bacteria, it is grossly overpriced and we feel that consumers would be unwilling to purchase such a product. In addition, fresh-it has a high value in use
  • Final Presentation - Marketing 20100

    1. 1. SafeAir, Inc. “ Leaders In Bathroom Innovation” Nazur Ahmed Aidan Fitzgerald Eric Kullberg Captain- John Maier Isaac Song
    2. 2. Presentation Overview 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan SafeAir, Inc.
    3. 3. The Innovation “Eliminating Bathroom Odors at the Source” *Fresh-It is the most competitive of all products available. SafeAir, Inc.
    4. 4. Presentation Overview 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan SafeAir, Inc.
    5. 5. Air Freshener Industry Large Industry Sales with Growth Mintel Research $10 Million/$1.52 Billion = .0065 SafeAir, Inc. Total Industry Sales: $1.52 Billion 22% 13% 18% 47% S.C. Johnson & Son, Inc. Reckitt Benckiser PLC Procter & Gamble Company Other 22% of Industry is $299.2 Million 4.8% Growth United States Home Air Fresheners: 2007 Need only .65% of Industry Sales
    6. 6. Air Freshener Industry Stage of Maturation; Lacking Innovation <ul><li>Fresh-It has competitive advantage over other products in the Air Freshener Industry </li></ul>Epinion.com Amazaon.com SafeAir, Inc.
    7. 7. Air Freshener Industry Stage of Maturation; Lacking Innovation SafeAir, Inc. provides a product best utilizing trends of consumers compared to industry leaders. Fresh-It rides trends almost 2X that of its next best competitor. Marketresearch.com Epinion.com Mintel Research Amazon.com SafeAir, Inc.
    8. 8. Air Freshener Industry Stage of Maturation; Lacking Innovation <ul><li>Competitive advantage provides industry analysis </li></ul><ul><li>Technological change occurs infrequently and in small increments </li></ul><ul><li>Reckitt has a large enough market share to acquire $10 million in sales </li></ul><ul><li>Enough growth in industry to avoid wrath of large corporations </li></ul><ul><li>Low comparative trend ratio - vulnerable </li></ul>SafeAir, Inc.
    9. 9. Air Freshener Industry Stage of Maturation; Lacking Innovation SafeAir, Inc. will effectively focus on selling the product to a specific consumer SafeAir, Inc. Production Selling Marketing P & G Febreze TrueAir .561 S.C. Johnson Glade Scented Oil Fan .527 Reckitt Freshmatic .494 Other <.4 SafeAir, Inc FRESH-IT Attack
    10. 10. Presentation Overview 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan SafeAir, Inc.
    11. 11. The Five W’s <ul><li>When? </li></ul><ul><ul><li>Late fall and early winter, inevitable onset of flu and cold season </li></ul></ul><ul><li>Where? </li></ul><ul><ul><li>Specialty stores like Bed Bath & Beyond (80%) </li></ul></ul><ul><ul><li>Online retailers (20%) </li></ul></ul><ul><li>Why? </li></ul><ul><ul><li>Added safety features and physiological benefits </li></ul></ul><ul><ul><li>Personal and Family Health </li></ul></ul><ul><li>What? </li></ul><ul><ul><li>Fresh-It Unit with two air fresheners, different colors, and one health protection filter and continued innovation </li></ul></ul><ul><li>Who? </li></ul><ul><ul><li>Health conscious female with children in the home </li></ul></ul>SafeAir, Inc.
    12. 12. Consumer Needs What Needs does Fresh-It Best Fulfill Safety:9 Dangerous germs are removed from the bathroom affecting health and wellness of families. Physiological:9 Provides a system of removing otherwise inhaled unclean air inside the bathroom. <ul><li>Fresh-It will provide consumers with a product fulfilling the most basic and fundamental human needs </li></ul>SafeAir, Inc. Self-Actualization: 7 Esteem: 8 Belonging and Love: 7 Safety: 9 Physiological Needs: 9
    13. 13. Target Niche Analysis *Fresh-It can best targets the needs of the homeowners association and gym moms more than other hobbies/occupations. SafeAir, Inc.
    14. 14. Target Niche Definition <ul><li>Upper middle-class, Midwestern female age 25-40 </li></ul><ul><li>2 or more children aged 8 and up </li></ul><ul><li>Homeowner in a suburban location in proximity to major city </li></ul><ul><li>Goes to the gym at least 3 times a week lasting approximately an hour </li></ul><ul><li>Uses air fresheners in home every day for a sense of cleanliness </li></ul>Marketresearch.com SafeAir, Inc.
    15. 15. Presentation Overview 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan SafeAir, Inc.
    16. 16. Goals and Strategy <ul><li>Primary Goals </li></ul><ul><li>Attain $10 million in Sales - 40% profit margin </li></ul><ul><li>Develop brand name recognition </li></ul><ul><li>Secondary Goals </li></ul><ul><li>Create substantial differential advantage with new technologies </li></ul><ul><li>Establish .65% Market Share to outperform the shakeout of competition </li></ul><ul><li>Break into the oligopoly as the industry matures and be labeled a “diffuser” </li></ul><ul><li>Provide the highest level of customer service and support. </li></ul><ul><li>Strategies </li></ul><ul><li>Possibility of acquiring stronger patents with buyout of Miracle Seat </li></ul><ul><li>Develop and release new patentable technology over the Fresh-it’s life cycle. </li></ul><ul><li>Develop relationship with technology companies </li></ul><ul><li>Time the response and release new products as the competition releases responses to Fresh-it’s old products. </li></ul>SafeAir, Inc.
    17. 17. Differential Advantage <ul><li>Significant competitive advantage with competitor products but… </li></ul><ul><li>How will SafeAir, Inc. maintain differential advantage over Fresh-It’s Life Cycle? </li></ul><ul><li>And combat the releases of competitor copies? </li></ul>SafeAir, Inc.
    18. 18. Product Life Cycle Product 1: - Add Scents Product 2: - Longer Filter Life Variety of Scents Better Aesthetic Product 3: - Digital Display of Time & Filter life Product 4: - Stronger Filter UV light Purification Product 5: - Display of # of Germs killed Diversified to entire house Compatibility with Computer Program - What’s Wrong Score - What’s Wrong Score - Product Score - Product Score - Product Score 1 2 3 4 5 Fall out SafeAir, Inc.
    19. 19. Presentation Overview 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan SafeAir, Inc.
    20. 20. Goals and Strategies <ul><li>Primary Goals </li></ul><ul><li>Attain $10 million in Sales - 40% profit margin </li></ul><ul><li>Sales per day per store of 2 Fresh-It Units </li></ul><ul><li>Develop brand name recognition </li></ul><ul><li>Secondary Goals </li></ul><ul><li>Maintain one week ’ s supply at retail level of product </li></ul><ul><li>Keep production to retail location time to 15 days </li></ul><ul><li>80% of sales in retail and 20% of sales on the web </li></ul><ul><li>Maintain a .3 competitive advantage over competitors </li></ul><ul><li>Maintain at least an average product utility of 8.6 </li></ul><ul><li>Dominate at least 10% of air freshener and air purifier prime shelf space at retail level </li></ul><ul><li>Strategies </li></ul><ul><li>Establish Just-In-Time inventory system to minimize out-of-stock at the retail level. </li></ul><ul><li>Sell directly to retailers without using a wholesaler and cover the additional costs created by this goal. </li></ul>SafeAir, Inc.
    21. 21. Needs Analysis & Channel Design <ul><li>Specialty Store </li></ul><ul><li>Sales/Day/Store: sales/week </li></ul><ul><ul><li>Fresh-It Sales per Day per Store: 2 </li></ul></ul><ul><ul><li>Refill Sales per Day per Store: 2 </li></ul></ul><ul><ul><li>Scents Sales Per day per Store: 4 </li></ul></ul><ul><li>Approx. 88 Stores </li></ul><ul><li>730 Units/Year X 88 Stores X $100 = $6,424,000.00 </li></ul><ul><li>730 Refills/Year X 88 Stores X $15 = $963,600.00 </li></ul><ul><li>1460 Scents/Year X 88 Stores X $10 = $1,284,800.00 </li></ul><ul><ul><li>Total Retail Sales: $8,672,400.00 </li></ul></ul><ul><ul><li>Estimated web sales 20%: $2,000,000.00 </li></ul></ul><ul><li>Total Sales for Fiscal Year: $ 10,672,400.00 </li></ul><ul><li>Stores per city – Assume avg. of about 6 stores/city </li></ul><ul><li>88 stores / 6 stores per city = 15 suburbs </li></ul><ul><ul><li>4 Midwestern states - Ohio/Michigan/Indiana/Illinois </li></ul></ul><ul><ul><ul><li>40% in Northern Illinois </li></ul></ul></ul><ul><li>Will not use wholesaler for 88 stores </li></ul><ul><li>Small quantity currently available at each store </li></ul>SafeAir, Inc.
    22. 22. Presentation Overview 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan 1 . Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan SafeAir, Inc.
    23. 23. Goals and Strategy <ul><li>Primary Goals </li></ul><ul><li>Attain $10 million in Sales - 40% profit margin </li></ul><ul><li>Develop brand name recognition </li></ul><ul><li>Secondary Goals </li></ul><ul><li>Sell at reasonable/attractive price for consumer in order to keep sales increasing </li></ul><ul><ul><li>Maintain competitive price to make profit </li></ul></ul><ul><li>Break-even as early as possible in year one </li></ul><ul><li>Protect the equity of the Fresh-It brand </li></ul><ul><li>Strategies </li></ul><ul><li>Skim Pricing to break even sooner with higher price </li></ul><ul><li>Pull marketing to advertise to customers and pull them into purchases </li></ul><ul><li>Price based on competitors “Value in Use” </li></ul>SafeAir, Inc.
    24. 24. Price Flexibility SafeAir, Inc. Miracle Seat Fresh-It FreshMatic Maslow Utility 36 42 18 Utility Bundle 37 42 19 Total 73 84 37 Ratio .811 .933 .411 Flexibility 1.1467 2.2702 Pricing $397 $45
    25. 25. Pricing Structure s = 7 0 % T o t a l C o s t s F r e s h - I t ( 7 3 0 U n i t s / Y e a r * 8 8 S t o r e s * $ 1 0 0 ) R e f i l l ( 7 3 0 R e f i l l s / Y e a r * 8 8 S t o r e s * $ 1 5 ) S c e n t s ( 1 4 6 0 S c e n t s / Y e a r * 8 8 S t o r e s * $ 1 0 ) SafeAir, Inc. F i x e d C o s t s = 7 0 % T o t a l C o s t s W e b S a l e s a c c o u n t f o r 2 0 % o f t o t a l s a l e s T o t a l S t o r e s : 8 8 N e e d s A n a l y s i s A n n u a l S a l e s F r e s h - I t S a l e s / D a y / S t o r e : 2 F r e s h - I t S a l e s / Y e a r / S t o r e : 7 3 0 R e f i l l S a l e s / D a y / S t o r e : 2 R e f i l l S a l e s / Y e a r / S t o r e : 7 3 0 S c e n t s S a l e s / D a y / S t o r e : 4 S c e n t s S a l e s / Y e a r / S t o r e : 1 4 6 0 P r o d u c t P r i c i n g C o s t S t r u c t u r e P r o f i t M a r g i n F r e s h - I t $ 1 0 0 F r e s h - I t 3 8 % R e f i l l C a r t r i d g e s $ 1 5 R e f i l l C a r t r i d g e s 7 0 % S c e n t s $ 1 0 S c e n t s 8 3 % W e b S a l e s 8 0 % R e v e n u e C a l c u l a t i o n s P r o f i t C a l c u l a t i o n s $ 6 , 4 2 4 , 0 0 0 F r e s h - I t : 3 8 % * $ 6 , 4 2 4 , 0 0 0 $ 2 , 4 4 1 , 1 2 0 $ 9 6 3 , 6 0 0 R e f i l l : 7 0 % * $ 9 6 3 , 6 0 0 $ 6 7 4 , 5 2 0 $ 1 , 2 8 4 , 8 0 0 S c e n t s : 8 3 % * $ 1 , 2 8 4 , 8 0 0 $ 1 , 0 6 6 , 3 8 4 T o t a l R e t a i l R e v e n u e $ 8 , 6 7 2 , 4 0 0 W e b S a l e s : 8 0 % * $ 2 , 0 0 0 , 0 0 0 $ 1 , 6 0 0 , 0 0 0 E s t i m a t e d W e b S a l e s $ 2 , 0 0 0 , 0 0 0 T O T A L P R O F I T $ 5 , 7 8 2 , 0 2 4 T O T A L A N N U A L R E V E N U E $ 1 0 , 6 7 2 , 4 0 0 T O T A L P R O F I T M A R G I N 5 4 % B r e a k - E v e n A n a l y s i s T O T A L C O S T S / Y E A R $ 4 , 8 9 0 , 3 7 6 B r e a k - E v e n ( S a l e s ) $ 3 , 9 6 8 , 8 5 3 T O T A L F I X E D C O S T S / Y E A R $ 3 , 4 2 3 , 2 6 3 B r e a k - E v e n ( Y e a r s ) 3 7 % T O T A L V A R I A B L E C O S T S / Y E A R $ 1 , 4 6 7 , 1 1 3 B r e a k - E v e n ( D a y s ) 1 3 6 C o n t r i b u t i o n M a r g i n $ 9 , 2 0 5 , 2 8 7 C o n t r i b u t i o n M a r g i n R a t i o 8 6 % A s s u m p t i o n s : F i x e d C o s t
    26. 26. Presentation Overview 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan 1. Product Selection 2. Analysis of Target Industry 3. Selecting the Target Niche/Market 4. Product Plan 5. Distribution Plan 6. Pricing Plan 7. Promotions Plan SafeAir, Inc.
    27. 27. Goals and Strategy <ul><li>Primary Goals </li></ul><ul><li>Attain $10 million in Sales - 40% profit margin </li></ul><ul><li>2 sales per day per store by first 3 months </li></ul><ul><li>Develop brand name recognition </li></ul><ul><li>Secondary Goals </li></ul><ul><li>Increase in sales of 15% over next 6 months </li></ul><ul><li>10% shelf penetration in retail stores </li></ul><ul><li>50% awareness among Gym Moms by 1 st year </li></ul><ul><li>Be covered/reviewed by 3 niche magazines within first 3 months </li></ul><ul><li>Build image as must-have household appliance </li></ul><ul><li>Provide the highest level of customer service and support </li></ul><ul><li>Strategies </li></ul><ul><li>Rely on word of mouth to drive demand and trigger innovation explosion </li></ul><ul><li>Utilize publicity to further drive demand as new products introduced </li></ul>SafeAir, Inc.
    28. 28. Media Mix <ul><li>Begin advertising three months before launch </li></ul><ul><li>Pull method </li></ul><ul><li>Skim method to achieve target niche sales. </li></ul><ul><li>Place ad in each local newspaper around the 6 stores/city locations </li></ul><ul><li>Radio promotions for 6 months during and after pre-launch period </li></ul><ul><li>Launch www.safeair.com to conduct online sales </li></ul><ul><li>Heavy reliance on Magazine, and Internet </li></ul>Budget Total: $300,000 Total Prelaunch Costs: $69,500 Pre-Launch Budget Total Media Budget SafeAir, Inc. Months Pre-Launch Dec. Jan. Feb. March April May-Aug Radio $15,000 $12,000 $8,000 $5,000 $5,000 $5,000 $22,000 Direct Mail $5,000 $5,000 $5,000 $2,000 $2,000 $2,000 $14,000 Website $10,000 $5,000 $2,000 $2,000 $2,000 $2,000 $10,000 Co-op Ad $14,500 $10,500 $4,500 $4,500 $4,000 $4,000 $28,000 Other $25,000 $10,000 $6,000 $5,000 $5,000 $5,000 $34,000 TOTALS $69,500 $42,500 $25,500 $18,500 $18,000 $18,000 $108,000 Months August 15th September November 15th Radio $3,000 $3,000 $9,000 Direct Mail $1,000 $1,000 $3,000 Co-op Advertising $2,000 $3,500 $9,000 Other $5,000 $5,000 $15,000 TOTALS $11,000 $12,500 $36,000
    29. 29. E-Mail Ad
    30. 30. Magazine Ad
    31. 31. www.safeair.com SafeAir, Inc.
    32. 32. Summary <ul><li>Fresh-It is a superior product </li></ul><ul><li>Fresh-It will win in the industry </li></ul><ul><li>Found specific target niche </li></ul><ul><li>Developed 7-10 year product plan </li></ul><ul><li>Created efficient distribution plan </li></ul><ul><li>Established fair & competitive pricing </li></ul><ul><li>Developed effective promotion plan </li></ul>SafeAir, Inc.

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