Marketing Management Assignment

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Assignment on Launching of a New Product in the Market

Transcript of Marketing Management Assignment

Page | 1 Welcome to the innovator of temperature sensitive, colour changing tiles.Our goal is to provide Mother Natures true colour palette to architects, designers, artists and the creative alike. Unlike traditional mediums, ours is alive, constantly morphing through a variety of organic colours and textures. The beauty of our products is experienced by living with it. As in nature, its the elements (Air, Fire and Water) that ultimately sculpt and paint the landscape. Capture a part of the outside world and set it free in your next project.

Marketing Management

Page | 2 IntroductionBringing a new product in to the market is a challenging task. We have to do lot of home work and market research to set a plan, where we want to go, how we want to go there and at last to evaluate, are we there? It sounds simple enough, but in reality it is not a straight forward job. Many new product ideas are conceived every now and then - never to be born because they are not properly introduced to market. To successfully launch new product or service with the efficient use of the available budget, it's essential to focus exclusively on the prospects we believe are most likely to purchase from us. These may be customers who are currently buying something similar and will appreciate the additional features our new product provides.

Marketing Management

Page | 3 Literature ReviewLaunching a new product is involved with the successful market entry. Urban and Hauser, (1993) stated that new product launch often requires the largest commitment in time, money, and managerial resources. Hultink and Hart (1998) proposed that, new products with high levels of advantage should be launched with higher levels of marketing expenditures, and with a higher proportion being aimed at the trade. The breadth of the product line, pricing decisions, and distribution intensity were the key elements described by Biggadike (1979) and Lambkin (1988) for their studies of market entry. The research by Hultink et al. (1997) dealing more specifically with new product launch, showed that at the tactical level of the launch, the key decision areas essentially consist of the 4Ps. Hart and Tzokas (2000) stated that, Price of a new product, at the time of launch, is an element integral to its appeal (or lack of appeal), the price reflects its competitive positioning and for consumers it may be a measure of the product's quality. Pricing strategy for new products, described by Choffray and Lilien (1984; 1986), and showed that penetration pricing might be necessary from the outset. Public relations, advertising, sales promotion and personal selling as major tools for communicating the new product to the market (Hart and Tzokas, 2000). Lambkin (1988) suggested that total advertising expenditures have been shown to have an impact on performance in the market entry. The study of Cooper (1984) and Yoon and Lilien (1985) showed that the market with a high potential growth having few competitors are more often the target markets for successful new products. Craig and Hart, (1992) Montoya-Weiss and Calantone, (1994) showed that product advantage as an important explanatory variable in new product success. A successful product launching involves brand positioning. Doyle (1992) mentioned that branding can only be successful if built on clear product differentiations and advantages.

Marketing Management

Page | 4 Companys ProfileOver the years, the company has gone through an important geographical expansion in both urban and rural regions. The opening of branches throughout the island (in Rodrigues Island) reflects Courts philosophy of being a people store by bringing the stores closer to the population and decentralizing its operations. To date we have 25 showrooms in Mauritius (including 6 Telecell stores), 1 Clearance Centre in Abercrombie Sainte Croix and 1 store in Rodrigues Island. Following the world wide rebranding strategy of the group, Courts revolutionised the retailing business in the country with the introduction of hire purchase facilities on a mass scale. The length of the repayment period was longer than that offered by any other companies then and consequently the amount of the monthly instalments was much lower and more affordable. Such payment options offered by Courts created a wave of dynamism in the economy and enabled many Mauritian household (especially low income earners) to acquire goods which they could not afford to pay cash. Courts has played a major role in the evolution of the Mauritian lifestyle and contributed in raising the standard of living in Mauritius. Quality products at lowest prices on the market dovetailed with the best credit facilities and service has been the winning formula of Courts throughout the years. The Company is constantly striving to respond to customers needs and expectations. This has enabled Courts Mauritius to remain the No 1 retailer on the market over the years. The principal activity of the Company consists of retailing household furniture, furnishings, home appliances, audiovisual equipment, information technology products, gym equipment, bicycles, mopeds, etc. Over the years we have been upgrading the merchandise ranges with greatly enhanced displays and the introduction of a new line of furniture, the Studio 20/20 Collection which is a contemporary furniture range. We have also introduced new departments at Phoenix like Finishing Touch specialising in floor covering (especially laminate flooring), lightings, blinds and Quincaillerie Centrale consisting of sanitary wares, ceramic tiles & bathroom accessories.

Marketing Management

Page | 5Courts StoresWe have 25 showrooms in Mauritius, 1 Clearance Centre in Abercrombie Sainte Croix and 1 store in Rodrigues. Courts Bell Village Courts Rose Hill Courts Curepipe Courts Quatre Bornes Courts Phoenix Courts Chemin Grenier Courts Mahebourg Courts Rose Belle Courts Flacq Courts Goodlands Courts Riche Terre Courts Triolet Courts Rivire du Rempart Courts Port Louis Courts Rivire des Anguilles Courts St. Pierre Courts Lallmatie Courts Telecell Courts Rodrigues Courts Red Hot Clearance Centre Courts Central Warehouse

Marketing Management

Page | 6 The Companys Mission and Vision StatementVision StatementA competitive and customer focused retail business generating sustained superior returns for its stakeholders.

Mission StatementWe aim to add value to peoples lives everyday.

Our Core ValuesLeadership Collaboration Customer Focus Integrity Results Orientated Initiative & Innovative

Marketing Management

Page | 7 History of CourtsThe company started trading in Mauritius in June 1985 under the name of Mammouth with a store at Brabant Street in Bell Village. The name Mammouth conveyed the image of a big and powerful company. This name was chosen since Mauritians were more accustomed to French and also to reflect the size of the first showroom at Bell Village. Courts Mauritius Ltd was owned by Courts Plc which was the holding company of Courts Group of Companies in England. In July 2001, the company changed its name to Courts following a worldwide rebranding strategy of the group. In December 2005, the company was bought by British American Investment Co. Ltd.

Marketing Management

Page | 8 About the ProductThe product is under the brand name of Magic Tiles. The product is colour changing or thermo chromic tiles that changes colour with respect to the temperature of the environment. Thus these tiles in an air-conditioned room will have different colours than in a well heated room while creating a continuous 'colour transition'. These tiles can also change colour due to interaction, such as touching, rubbing or even by breathing on it. They could be used in variety of locations to create different visual atmospheres depending on the environment. This Product already exists in the markets of US, but has not yet been introduced in Mauritius. These colour changing tiles are made out of ceramic and incorporating latest Italian Technology. The different types of tiles which are available are: Wall Tiles Floor Tiles Vitrified Tiles Roof Tiles

The product is used for different purposes. They are mainly categorized as follows: Kitchen Bathroom Office Bedroom Party Hall Roofing Magic Tiles enable a whole new dimension in design with glass and tile elements in palette-coordinating and ever-changing colorations. Virtually any colours may be formulated to achieve a wide range of visual effects. Desired "activation" temperatures may be specified, in design ranges from 32F to 120F. Results are waterproof in both opaque and translucent configurations. Colour is reactive to all temperature influences including water, steam, air,

Marketing Management

Page | 9radiant and touch. For indoor and outdoor applications direct exposure to ultraviolet light may be facilitated with approved ultraviolet (UV) filtering product. Size, thickness, shape and all required fabrications may be specified.

Product Logo

The logo is a replica of the colour-changing tiles. It is a colour palette with the brand name lying on it. Therefore, the identification of the product will be through the logo which.

Motto

The motto of the product Magic Tiles is Brings Colour To Your Life.

Marketing Management

P a g e | 10 Features of the ProductThe various features of this product are mentioned below: 1. These tiles can change colour according to the changes in temperature of the external environment. 2. The product is designed and customized according to the needs of the customer. 3. Magic Tiles are hard and durable. 4. Extremely resistant to stains & dirt. 5. Tiles are easy to install and maintain. 6. Magic Tiles can be used to decorate the interiors of residential and commercial projects. 7. They can endure h