Emr Innovations Case Study Solution
Recommendations
After evaluatingthe entire situation and market condition, it is recommended that Reynolds should start the production and promotion of a new product- Lock-Awn device. The proposed target market, marketing and positioning strategy along with marketing mix are discussed in detail below:
Target Market
The rapidlygrowing RV segment was baby boomers along with an income of $56,000. It was identified that RV users loved to travel from place to another, and spent most of the time on roads. The users wanted flexibility, convenience and freedom to go anywhere. They age group would be in between 45 to 65 age, because they are retirees and wanted to explore the world after retirement, with an inclusion of having greater purchasing power as compared to other customers.
Marketing Strategy
The marketing strategy suggests that the product would provide a 30 day guarantee along with a 90-days’ limited warranty that would be given in order to provide 100% satisfaction to the customer. In order to maximize the product’s sales, three potential marketing options have been proposed. The company should target baby boomers, as they are representing the largest segment, by approaching them with the help of direct contact services. Developing a website would be an expensive decision. Thus, it is recommended that the company should make a contract with individual Workampers.They live in RVs and seek potential business opportunities. They could better understand RV travelers and their needs. It has been estimated that Workampers would charge 25% margin on each sale. Furthermore, the marketing mix strategyis discussed in detail below.
Positioning Strategy
According to the proposed positioning strategy, it is suggested that the Lock-Awn device would achieve the first mover advantage by proposing an innovative product to the market. In addition to this, Eric considered it as the superior product as compared with its competitors along, with the consideration of potential options in order to minimize the product’s cost.
Marketing Mix
The following marketing mix strategy has been formulated for the new product- Lock-Awn device. (See appendix 3)
Product
The product consisted of three main parts: a lock road, a two-piece roller and a catch. A lock road will replace the awning road, which is considered as the most inconvenient product in RV. A 30 day guarantee along with 90-days’ limited warranty will be given in order to provide 100% satisfaction to the customer.
Price
The material cost per unit would be $5.95, the labor cost per unit would be $5.90, and the packaging would cost $0.75 per unit. In addition to this, the fixed cost would include $3500 for assembly equipment, $1000 for office equipment, $5000 for product’s insurance per year, $1500 for building lease per month, $400 per month for utilities and $1000 per year for commercial insurance. Eric’s and Mary’s salaries have been estimated as $600 and $300 per week, respectively.
Place
Three potential places have been examined with the help of associated pros and cons. selling through mail order would shift shipping cost to the buyer. Designing and managing a website would cost approximately $2,200. Another option would be to approach individual workampers. They live in RVs and seek potential business opportunities. Approaching an established distributor would be good option. The largest RV distributor retailer was Camping World, in the United States.
Promotion
A 30 day guarantee along with a 90-days’ limited warranty, which would be given in order to provide 100% satisfaction to the customer. In addition to this, a number of promotional activities have been proposed in order to approach a larger number of customers, which includes:promotional brochures, advertising on RV-related websites, publication in popular magazines, promote product at RV shop, RV trade publications, discussion in RV chat rooms and the usage of RV club networking systems.
Conclusion
It is concluded that in 2002, Eric and Mary invested approximately $10,000 in order to develop a prototype of an innovative RV product, which was named as Lock-Awn anti-billow device. The owners were unsure about the product’s viability in the market. RV repair shop’s credit history was excellent, and it was examined by the local bank that their business in total would worth approximately $900,000. The product consisted of three main parts a lock road, a two-piece roller and a catch. The RV fastest growing segment was baby boomers along, with an income of $56,000. The users wanted flexibility, convenience and freedom to go anywhere.Thus, it is recommended that the company should make a contract with individual Workampers...........................
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