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Market Analysis
Presented by
CSUMB
Presented to Carol Davis
Business Marketing BUS306
Cal State University Monterey Bay
Sola
SOLAR COLEMAN MARKETING PLAN 1
Table of Contents
Executive Summary 4
Situation Analysis 6
Market Summary 6
Geographic 7
Demographics: 8
Age Segmentation 9
Life-Cycle Stage Segmentation 9
Income Segmentation 10
Behavior Factors/Psychological 11
Market Needs/ Market Trends 12
Market Growth 13
SWOT Analysis: 14
Strengths 14
Weaknesses 14
Opportunities 15
Threats 15
Competition 15
Product Offerings 18
Keys to Success 19
Critical Issues 19
Marketing Strategy 20
Value Proposition 20
Mission 20
Marketing Objectives 20
Financial Objectives 21
Target Markets 21
Positioning 21
Strategies 22
Marketing Mix: 22
SOLAR COLEMAN MARKETING PLAN 2
Pricing 22
Distribution 22
Marketing Communications 23
Marketing Research 24
Financials: 25
Break-even Analysis 25
Sales Forecast Analysis 25
Marketing Cost Breakdown 26
Controls 27
Implementation 28
Marketing Organization 28
Contingency Planning 29
References 30
SOLAR COLEMAN MARKETING PLAN 3
List of Figures
Figure 1: Bar Graph (How Likely to Buy This Product) 7
Figure 2: Bar Graph (What is Your Age?) 8
Figure 3: Bar Graph (Family Size) 9
Figure 4: Bar Graph (Income Levels) 10
Figure 5: Bar Graph (Activities for Using This Product) 11
Figure 6: Line Graph Renewable Electricity by Type 13
Figure 7: Bar Graph New Generation of Fuel 14
Figure 8: Four Ps of Goal Zero, Solar Kit 16
Figure 9: Four P’s of Wagan Tech, Solar E-Power Panel Cube 17
Figure 10: Four P’s of Bushnell, Solar Wrap 400 Solar Power Charger 18
Figure 11: Line Chart Break-Even Analysis 25
Figure 12: Table Sales Forecast Analysis 26
Figure 13: Table Total Fixed and Variable Marketing Costs 27
SOLAR COLEMAN MARKETING PLAN 4
Executive Summary
Today more people have introduced devices such as smartphones and tablets into their
everyday lives. Despite advancing technology a problem with most electronic devices is keeping
them charged, especially while outdoors far from any electrical outlets. The outdoor recreational
industry is one of the largest in the United States and millions and we believe consumers would
be interested in a product that would allow people to conveniently charge devices even while
outdoors far away from any electrical outlets. To address this problem Solar Coleman looks to
combine one of the most common pieces of equipment brought along to outdoor events, the
cooler, and combining it with innovative solar charging technology to keep any electronic
devices charged.
The product is Solar Coleman a portable cooler with solar panels that charges small
devices utilizing the sun’s rays. The solar panels will be durable and have a weather protectant
coating. The cooler will have a retractable handle and rugged wheels allowing users to easily
transport the cooler among different types of terrains. It will have a universal serial bus (USB)
and 12-volt DC outlet allowing the user to be able to charge different devices. It will have a
lifetime warranty creating peace of mind among the consumers.
The main target market consists of people with active lifestyles. After conducting an
online survey we found that the ages range from 18-54 year olds. We will target middle class,
and above that have disposable income. We will utilize online marketing resources to inform and
educate consumers of a new way to charging small devices while in the outdoors environment.
We plan to position Solar Coleman into a position where everyone who participates in
outdoor activities such as camping or tailgating would want to own a Solar Coleman cooler over
a regular cooler. To do this we intend to make the Solar Coleman as affordable even at its
introduction into the market. This will make the price both appealing and hard for potential
competitors hard to match Solar Coleman’s combination of price and quality. In addition with
Coleman’s already established distribution system through retailers such as Costco, we will
make it easy for consumers to find and purchase the Solar Coleman.
Solar Coleman does not have competitors that currently sell a comparable alternative
however; there are companies which manufacture portable devices that gather the sun’s energy
to charge mobile devices. Solar Coleman is unique in that it offers more features than are being
SOLAR COLEMAN MARKETING PLAN 5
offered by its competitors. It provides a place to keep things cool as well as keep devices
charged.
The cooler will be sold for $149.99, and offer a limited lifetime warranty. Our initial
research estimates sales of 47,304 units the first quarter, and approaching the breakeven point
at 189,215 units after the first year. We project a 15% increase in sales from customer demand
and increase in technology availability.
Solar Coleman will be sold directly to customers through the company’s website,
catalogs and telemarketing. Most importantly, they will be available on a global basis through
Costco Wholesale and its stores worldwide. Advertising, online marketing, public relations, sales
promotions, and sporting events will receive most marketing efforts. The marketing
communication will include a combination of indirect, direct and personal selling to the targeted
consumer.
Providing consumers with an environmentally friendly, mobile charging solution is a
market need that has not been addressed. The Solar Coleman cooler will conveniently supply
portable power to everyone who loves the outdoors and already use a cooler.
SOLAR COLEMAN MARKETING PLAN 6
Situation Analysis
Solar-Coleman, an ice chest cooler outfitted with a solar panel, will be part of the outdoor
and recreational industry under the Coleman Company. Coleman Company was founded in the
early 1900s, over 100 years in the industry, a global company with offices worldwide; they
practice operational excellence (linkedin, 2014). Solar-Coleman will provide a practical solution
for people in need of charging small electronic devices while outdoors. Consumers will be able
to use the cooler while going camping, fishing, boating, tailgating, going to the beach, and any
activity that takes place outdoors. Users of a wide range of electrical devices like mp3 players,
phones, GPS or tablets, will be able to keep their devices charged. Charging will allow users to
stay connected with their devices for many purposes like communications, taking pictures,
listening to music, taking notes, checking in with social media, or simply passing time. The
Solar-Coleman is a cooler with a built-in solar panel on the top part of the cooler. It will have a
small converter that transforms the energy from solar to usable energy, via a USB port and a 12-
volt DC output where users can plug in small devices that need to be charged.
Market Summary
In the United States alone, more than 140 million Americans participate in outdoor
recreational activities, an industry worth more than $646 billion (ASLA, 2014). More money is
spent on outdoor recreation in the United States than in other large industries such as Household
Utilities ($309 billion), Motor Vehicles/Parts ($340 billion), and Gasoline/Other Fuels ($354
billion) (ASLA, 2014). Outdoor recreation is often an escape from our interconnected world.
For many Americans use of technology, another growing industry, is quickly becoming
an important part of life. Our social dependence makes it harder and harder to leave behind
technology. Often while people are enjoying outdoor activities such as camping, sporting events,
boating and hiking they are in remote areas far from any electrical outlets. This presents a
problem to keep their devices charged and ready to use. To solve this problem we compared
various different products that are often brought along on outdoor activity and decided ultimately
that a cooler is the best candidate to modify with solar panels. These panels would charge
electronic devices through USB ports used by most portable device manufacturers.
From a survey conducted by our group, this product concept has received positive
feedback by the majority of respondents. People surveyed said they would be moderately likely
SOLAR COLEMAN MARKETING PLAN 7
to extremely likely to buy this product if it were available in the market today. This market
analysis concludes there is preliminary high demand for the solutions our concept can offer.
Geographic
By partnering with a global leader in camping accessories, Coleman Company, Inc., the
intended geographic segmentation, rather than being divided, would be inclusive worldwide.
Coleman’s existing products are used throughout the world by outdoorsmen and people with
active lifestyles. According to Coleman Company, Inc.:
Our products have journeyed deep in the Sahara desert, and been along on treks all the
way to the South Pole. Coleman lanterns guided aircraft to safe landings in the Andes
Mountains in South America in the 1920s, and helped climbers reach the top of Mt.
Everest”(Coleman, 2014).
In effect, globalization is a key component to Coleman’s continued success which
promises to provide access to the
masses for Solar-Coleman. Our team
recently conducted a simple random
probability sample in which the
product concept survey asked
participants: if the Solar-Coleman
was available today, how likely
would you be to buy this product?
Thirty-seven percent of respondents
were very likely, and 31.25% were
moderately likely to purchase the
Solar-Coleman. This positive data
gives a valuable glimpse into
consumer market research.
Figure 1 Bar Graph (How Likely to Buy This Product
Figure 2 Bar Graph (What is Your Age?)
SOLAR COLEMAN MARKETING PLAN 8
Demographics
Age Segmentation
In the product concept survey, some interesting results were found. People in the age
group 18-24 accounted for 31.25%, the highest percent of respondents. This was interesting
because our initial estimate figured people
in a higher age group would be the most
interested in the Solar-Coleman. It was
assumed adults with children would be the
most likely consumers. The data indicated
the 35-44 age demographic was second
highest. This survey suggests the younger
age group is the most appropriate group to
position marketing efforts.
The “empty-nesters” group, ages
ranging from 45-54, was also an important
target segment mainly because this segment
continues to live active lifestyles. The 25-
34 age group resulted in a smaller sample
size partially because few of the respondents were fellow students and not indicative of this age
groups overall outdoor interest and active lifestyles. Further targeted research is needed to more
accurately assess the tendency to purchase the Solar Coleman. The last three age groups which
start at age 55 would also be an included segment. These age groups are not considered attractive
market segments due to the level of inactivity associated with them. According to annual data
from America’s Health rankings, people in age groups from 45-65+ account for over 56.20% of
physical inactivity in the U.S. population (America’s Health, 2014). However, Solar-Coleman
would see this target demographic for product positioning because of the high-level income this
age group is typically associated with and not so much as having to do with active lifestyles.
SOLAR COLEMAN MARKETING PLAN 9
Life-Cycle Stage Segmentation
Most other consumer products cater to specific life-cycle segments. From our in-class
practicum presentation, we illustrated how Beats headphones are marketed to young, hip, and
sound-quality conscious consumers.
Vehicles typically have a specific
target market as well. Vans are
targeted to families with children.
Luxury vehicles are targeted to the
upper-income consumer. Sports cars
are targeted to the younger, male
consumer. Solar-Coleman seems to be
a good fit for all life-cycle stages. The
“families with children” segment
accounts for 65.63% of respondents.
This stage in peoples’ lives indicates
more family outdoor activities are
taking place as opposed to “single” and
“married-no children” segments which
account for 34.38% of respondents. The “single” and “married” family sizes seem to have
different types of outdoor activities which also find benefits in using the Solar-Coleman. This
initial data illustrates the Solar-Coleman concept has proven to have a broad life-cycle
segmentation which is relatively even throughout.
Figure 3 Bar Graph (Family Size)
SOLAR COLEMAN MARKETING PLAN 10
Income Segmentation
Figure 4 Bar Graph (Income Levels)
SOLAR COLEMAN MARKETING PLAN 11
Income is a major determining factor for Solar-Coleman. Marketing efforts would be
tailored to the consumer with
expendable income. The product
concept survey suggests the income
level from $0 - $24,999 accounts for
23.33% of the market and $25,000 -
$49,999 is 33.33% of the income
segment. These two segments
combined, reflect over half the
population. According to Ben
Casselman and his article, When
Living Wage Is Minimum Wage, he
suggests that most of the low wage
earners have resources to help them
lead active lifestyles. He writes that
“[a] substantial — and increasing —
number of young adults are living
with their parents”(Casselman,
2014). These lower income earners
are prime candidates because often
times, the wages they earn are mainly considered disposable income since the regular bills and
cost of living is paid for by the parents. An example of this are my children, ages twenty-two and
twenty-one. My 21 year old has no job yet drives a Ford Mustang all over town and even buys
friends gifts with my money. She has a small cell-phone repair business, based out of my retail
store location, and typically makes less than fifty dollars a week while going through the
Certified Nursing Assistance program in Salinas. My son works part-time for McDonald’s and
he also drives a Nissan truck and hangs out with all his friends. He makes less than $700.00 a
month but parties like a rock-star. Both of my children put together are way below the poverty
line but my income, regretfully, gives them freedoms that I cannot, and don’t want, to spend
money on. With over 71.2 million memberships in 10 different countries, our retail partner,
Costco Wholesale, is a strong channel that will supply consumers with our product. The affluent
Figure 5 Bar Graph (Activities for Using This Product)
SOLAR COLEMAN MARKETING PLAN 12
consumers with incomes of $50,000 and above would also be part of marketing efforts in part
due to Costco’s existing customer base. According to a recent article titled, Tightening the
Beltway, the Elite Shop Costco, in the New York Times by Richard Perle, he writes, ”to its
benefit, Costco has carefully fashioned an upscale-downscale image, and their stores do better in
high-end locations” (Perle, 2007). This comment was in reference to a Costco store which was
strategically located near the Pentagon in the Washington area in Arlington, Virginia. This store
is frequented by and attracts government officials, ambassadors, and military personnel (Perle,
2007). All are part of the higher income population.
Behavior Factors/Psychological
Behavior factors
which are essential to
product success would have
to be broad by definition.
Solar-Coleman would be
targeted to the active-
lifestyle consumer. This
consumer is typically
outdoors and enjoys a wide
range of activities.
Coleman has successfully
focused its marketing
efforts to include outdoor
activities like “hiking,
camping, fishing, hunting,
boating, swimming, four-
wheeling, relaxing, [and] tailgating” (Coleman, 2014). The Solar-Coleman would fit right into
this company’s existing behavioral marketing campaigns. This survey suggests camping,
tailgating, and sporting events would be the most common uses for the concept. Fishing, boating/
skiing, and job site use are strong markets which should be included as well.
Market Needs
SOLAR COLEMAN MARKETING PLAN 13
Bill McKibben is a Harvard University graduate and an American Environmentalist who
has written a broad range of global warming books. He once said, “There is an urgent need to
stop subsidizing fossil fuel industry, dramatically reduce wasted energy, and significantly shift
our power supplies from oil, coal, and natural gas to wind, solar, geothermal, and other
renewable energy sources. (Brainy Quote)” The situation of the marketplace gap is described in
some detail in which consumers should change their lifestyle from using electricity to using solar
power. The main point is that Solar-Coleman would play a very strong significant factor in the
solar innovation field. The specific benefit this product will have in this industry is to provide a
service for a full variety of customers who are looking for that strong wild actor of portability
this product provides. Gaining this benefit would decrease the necessity of electricity. The Solar-
Coleman provides for their customers who are looking for a long-term effect of change that will
bring them a good beneficial method of solving the trending gap in this marketplace, changing a
customer’s life with their product will give Coleman a chance to innovate their production line.
Market Trends
The Solar-Coleman is heading towards the 21st century where the variable is technology.
The web article “Solar Power Is the Future.Com” gives the public a chance to view this site as an
informative example to understand the idea of solar power.
The article “Solar Power is the Future.Com” states:
The simplest examples of solar energy use can be found in basic tasks, such as using the sun to
dry clothes or food. These days, some homeowners turn to solar home heating or solar water
heating to power their homes. Things like the clothes washer & dryer, heating hot water for the
bath, powering the oven, and of course lighting in the home, can all be run with solar power.
Even outdoor living spaces can be enhanced through the use of solar garden lights!”(Solar Power
is the Future.com)
Outside influences such as the sun improve the day-to-day lives of individuals who rely
on solar power show that there is a trend. The influence that this new product will bring into the
market is a fresh new style of living; Solar-Coleman represents a new direction of growth.
Moving forward in this industry has influenced a new market for consumers who want to be
outdoors with the chance to bring their commodities to make them feel more comfortable.
SOLAR COLEMAN MARKETING PLAN 14
Marketing Growth of Solar-Coleman
The Solar-Coleman line has the ability to grow through the market in which they gain the
values and services they provide to their customers. These measurements change over time and
the income output will increase the revenue of this company. On May 7, 2014, a web article was
released called the Annual Energy Outlook 2014, stated that, “Solar energy is the fastest-growing
source of renewable generation, increasing by 7.5%/year from 2012 to 2040, almost exclusively
as a result of increased photovoltaic capacity in both the electric power (central-station) and end-
use (customer-sited) sectors.”(Annual Energy Outlook, 2014). Solar power is not only the
support of growing markets, but also Coleman has the necessity to open new doors and increases
the generation of the century more than 7.5% from 2012. The projections of solar power have
given the chance for success in this current market.
Subsequently, another web article named “GreentechSolar stated that, “Solar was the
second-largest source of new electricity generating capacity in the U.S., exceeded only by natural
gas. Additionally, the cost to install solar fell throughout the year, ending the year 15 percent
below the mark set at the end of 2012.”(GreentechSolar, March2014)
Figure 7: Bar Chart New Generation of Fuel
SOLAR COLEMAN MARKETING PLAN 15
Solar-Coleman will soar through the market gains it will produce. This company’s
production Solar-Coleman will consume the product market as a strong relation of market
growth, but also a chance to increase natural resources.
SWOT Analysis
Strengths
Brand awareness and brand loyalty are strengths for Solar-Coleman. Coleman Company, Inc.
has been a trusted brand since 1905, when W.C. Coleman started the company (Coleman, 2014).
Coleman continues to capture global market share with the emerging technologies and brands
which include “Sevylor® floats and towables, Stearns® life vests, Mad Dog Gear® ATV
accessories, Helium® sports vests and AeroBed® airbeds” (Coleman, 2014). Additionally,
utilizing Costco as a retail partner, Solar-Colman is sure to capture a vast market share of
consumers which align with target segments presented earlier. Distribution would also be
advantageous with Costco’s existing warehouses and store locations.
Weaknesses
One of the weaknesses the Solar Coleman has is the reliance on external suppliers for the
various components needed. Outsourcing allows cost or research and development to be greatly
reduced, maximizing profits, but also potentially exposes a supply shortage. After initial sales
SOLAR COLEMAN MARKETING PLAN 16
figures, and overall market evaluation, Coleman would be encouraged to consider further
research and solar panel manufacturing.
Opportunities
According to a detailed press release from the Bureau of Economic Analysis (BEA),
recent State Personal Income has been on the rise. The data concludes:
Quarterly data: State personal income growth accelerated to 1.5 percent in the second
quarter of 2014 from 1.2 percent in the first quarter. Personal income growth ranged from
2.7 percent in North Dakota and Nebraska to 1.1 percent in New York and Alaska, with
growth accelerating in 36 states (BEA, 2014).
Due to the growing economy, we expect consumers will continue to seek outdoor and leisure
activities which will prove to fulfill product demand.
Threats
This product is dependent on the availability of solar panels. If solar panel technology
changes, and is determined to conflict with the cooler use and environment, it could have a
negative impact on production and safety. The material used for the solar panels is also a threat
due to possible availability shortages or price fluctuations. Additionally, outdoor activities,
sporting events, and tailgating thrive during a flourishing economy but also decrease during an
economic downturn. An economic downturn would negatively affect sales.
Competition
The Solar-Coleman ice chest cooler is unique in the sense that there is not a similar
product on the market yet. There are however, competitors that offer solar power to charge
electronic gadgets. The Solar-Coleman would have a few major competitors currently in the
market including: Goal Zero Guide, Solar kit; Wagan Tech, solar e-power panel cube; Bushnell,
Solar Wrap power charger which provides a similar solution for consumers in need of solar
charging. These competitors offer a solution to the problem of charging devices while outdoors
or on the go. Goal Zero and Bushnell offers compact on the go solutions for charging small
devices. Wagen Tech offers a bigger product that generates more electricity and allows users to
power bigger items.
Figure 8 Four Ps of Goal Zero, Solar Kit
Goal Zero, Solar kit Product
$99.95-$119.99Price
Sold online and in stores: Costco, Amazon, REI, L.L. Bean, Bed Bath and Beyond, and Fry’s electronics
Place
Back up power source, that charges devices, therfor solar charge can come to the rescuePromoting product world wide
Promotion
SOLAR COLEMAN MARKETING PLAN 17
Goal Zero launched in
June, 2009 and has set
out to empower people
all over the world
(GoalZero, 2014). They
create portable solar
power systems, ranging from solar panels, portable power packs, generators, to chargers and
accessories (Crunchbase, 2014). The Goal Zero solar panel kit is a small lightweight and
compact panel allowing portability. This provides a feature of being able to plug in devices using
USB while having the capability to charge batteries. Additionally, this product has the capability
of charging two items at the same time. Consumers have complained that the iPhone, iPad, and
other apple devices are not able to use this accessory to charge devices (Costco, 2014). “The
smart-phone industry includes fifty six percent of the U.S. market. Apple's iPhone accounts for
twenty-five percent of the share” (appleinsider, 2014). Goal Zero is losing out on twenty-five
percent of potential customers.
Figure 9 Four Ps of Wagan Tech, Solar E-Power Pane Cube
SOLAR COLEMAN MARKETING PLAN 18
Wagan Tech has five portable solar panels; the system is large and effective. However, it is a
bulky box that collects and converts the sun’s solar power into usable energy. It is able to charge
larger items including charging a car battery, laptops, . Additionally, it will charge a power
impact drill for five hours, and power up a television, (Home depot, 2014). The Solar E-Power
Panel Cube offers a limited manufacturer warranty of two years (Home depot, 2014). As a
Wagan Tech, Solar E-Power Panel Cube
Product$949-$1,099Price
Sold online and in stores: Home Depot, Target, Amazon, Best Buy, Costco, Walmart, Cabelas
Place
taking technology on the go. Promotion
Figure 10 Four Ps of Bushnell, SolarWrap 400 Solar Power Charger
SOLAR COLEMAN MARKETING PLAN 19
consumer, paying close to $1000 for a gadget, the expectation is that it must be a durable
product, yet the manufacturer fails to back its product after two years. The customer must
register the product within 30 days in order to acquire the manufacturer warranty (Home depot,
2014).
Bushnell, Solar Wrap 400 Solar power charger, has a flexible solar panel that unrolls when the
user requires collecting solar energy; once done it rolls back up. It comes in a durable hard case
and it is small and compact; this feature makes it ideal for charging smaller electronic devices
like mp3 players, cameras, and phones (REI, 2014). According to customer reviews they were
dissatisfied with the charging rate and that the battery capability was low (REI, 2014).
Product Offering
Solar-Coleman will provide a solution to charge devices as well address consumer needs
like holding items such as beverages, food, or whatever the consumer decides to keep cool. It
will have rugged wheels and a retractable handle allowing users to pull the cooler in a range of
terrains and take it to whichever destination they desire. It will generate enough power to charge
small devices. Users will have the freedom of being mobile and being able to charge their
devices while being outdoors away from electrical power outlets.
The Solar-Coleman will offer a compact durable weather-resistant solar panel coating on
the lid of the cooler. The solar panel will “consists of the silicon semiconductor surrounded by
Bushnell, SolarWrap 400 Solar Power Charger
Product
$180-$199.99Price
Sold online and in stores: REI, Amazon, Ebay, Walmart, Cabelas
Place
efficent and fast generating energy from solar power
Promotion
SOLAR COLEMAN MARKETING PLAN 20
protective material in a metal frame” that will gather energy from the sun’s rays (madehow,
2014). The lid will have two cup holders allowing the user to have an area where beverages can
be placed. The solar panel will have a life-time warranty; it will be built to last, creating peace of
mind for the consumer. The cooler assembly will have a limited lifetime warranty as well. A
universal serial bus (USB) and a 12-volt gear outlet will allow users to connect any device using
a USB cable. It has a portable rechargeable battery pack allowing the user to save the power
generated by the solar energy allowing customers to use during the day or at night. The primary
building material which will be used for the cooler will be polyethylene. It is the same material
that Coleman currently uses for most of its coolers. Solar-Coleman will create peace of mind
knowing there is a power source that can power their devices while enjoying the outdoors.
Keys to Success
In order to capture a large amount of market share in the cooler business, we decided to
partner up with the Coleman brand because they have a long standing reputation with quality
coolers. Consumers instantly recognize the Coleman brand and are more willing to try out a
cooler that is capable of recharging electronics as opposed if the same exact product was
manufactured by another company with less of a connection to coolers. Along with the Coleman
brand comes its established distribution network. Coleman coolers are carried by every retailer
that carries coolers, such as some of the United States’ largest retailer such as Costco and
Walmart. With these well-established retail partnerships, the Solar-Coleman will reach a very
broad market segment and large percentage of potential customers. The biggest key to success
for the Solar-Coleman will be that it will be the first of its kind out on the market. This will be a
brand new product that will appeal to anyone who does any kind of outdoor recreational activity
and Coleman will be the only company making it.
Critical Issues
As with most new products there are many issues that could potentially stop the Solar-
Coleman from succeeding. The first being that the product is heavily supplier dependent as we
are purchasing the solar panel’s components from a third party company and since they control
the price of the parts. Not having the right supplier could affect our production, profitability,
reliability and retail price.
Secondly, since this is a new product, the market will be wide open for competitors to
start making their own version of this product. This will potentially reduce some of the product
SOLAR COLEMAN MARKETING PLAN 21
demand. Most new products are open to imitators as they try to cash in on the wave of success
experienced by the product. It is noted that having a product copied can be financially
devastating to the one who invented it (HG, 2014).
One last issue for the product could be that the economy fails and people would not have
as much income to spend freely on products used for recreational purposes. The outdoor
recreational industry may be one of the largest in the United States but if money begins to
become an issue it will be one of the first areas consumer cut spending on. Spending in the
United States is still 3.5 percent below the pre-recession peak (Coy, 2014).
Marketing Strategy
Value Proposition
As we all become more and more connected every day, people are carrying their
smartphones and tablets everywhere they go. In the United States 58% of American adults have a
smartphone and 42% of American adults own a tablet computer (Pew Research, 2014). That is a
large segment of the U.S. population that is using these devices to and when they participate in
outdoor recreational activities, which accounts for 49.4 percent of Americans population did in
2012., tThey often find themselves in places devoidlacking of any methods of allowing them
keeping their devices charged (Outdoor Foundation, 2013). Solar Coleman seeks to address this
problem by taking one of the most common pieces of equipment used in outdoor recreation, a
cooler, and equipping them with solar panel charging components for the convenience of the
consumer.
Mission
Solar Coleman seeks to provide outdoor enthusiasts everywhere a high quality cooler
with the innovative added convenience of solar powered charging technology to allowing
customers to keep their important electronic devices charged in locations that usually offer
limited options to charge such devices.
To further simplify our mission statement to the end consumer we intend to use the
slogan “Be Cool and in Charge”, which simplifies the objective of what the product is trying to
deliver which is to keep things cool, and to charge electronic devices.
Marketing Objectives
SOLAR COLEMAN MARKETING PLAN 22
We want to introduce this brand new product to increase Coleman’s sales by creating a
market for solar panel equipped coolers. Our objective is to reach every outdoor enthusiast or
anyone in general that uses a cooler to keep things cold while enjoying outdoor recreation
activities. As this is a brand new product we are introducing to the market we want to make sure
we position our product’s advantages and value clearly across to the consumer. We also want
thisThis product will to bring brand awareness to the Coleman brand. This product is something
new and exciting, and will certainly catch the attention of consumers as we plan to market this
product extensively through various outlets. It will put the Coleman name back in people’s heads
and bring us positive press.
Financial Objectives
In regards to the product itself we hope to have it at a very reasonable price, something
that the consumer would not think is more than what it should cost. We plan on making the cost
of our product as close to possible to being the lowest price of a cooler and solar panel charging
technology combined meaning that the price of the cooler should be close to the price of those
parts combined. As we are working closely working with Coleman we can get the price of the
coolers as low as possible. As for the solar panels and charging components we hope to find a
supplier that can offer us those components at the lowest price possible as well.
Target Markets
Solar Coleman aims to reach anyone who uses a cooler, but for an example we want to
target a certain demographic. This demographic would include middle class individuals who do
like to spend a lot of free time outdoors. According to our own survey that we conducted, the age
group most interested in our product would be the 18-34 age group. Also to have a specific target
in mind we aim to market especially to potential customers living in places close to popular
outdoor recreational hotpots, California for example has many of the United States top
recreational spots ranging from popular parks such as Sequoia National Park, Lake Tahoe, and,
Yosemite National Park to several major stadiums such as Levi’s Stadium and Qualcomm
Stadium where tailgating is very popular. All these locations are places that you would be likely
to find someone using a cooler in (Touropia, 2014).
Positioning
We plan on marketing the Solar Coleman as a “more for less” product. Knowing out
target demographic, we want to position our product carefully. As our goal we hope to position
SOLAR COLEMAN MARKETING PLAN 23
the Solar Coleman into a position where everyone who uses a cooler would want to have our
Solar Coleman instead. We want consumers to prefer the Solar Coleman and never want to just
have a regular cooler without solar panel charging technology ever again. Later down the road
we should expect for competitors to arise, and offer their own solar panel equipped coolers. The
“more for less” approach would help us be used in this regard by already trying to beat out the
competition price-wise even before they come out.
Strategies
The sStrategies of Solar Coleman will be to focus on the ease of charging devices while out and
about using solar energy. The first step is to reach out to our target market, active 18-54 year
olds, with mid-to-high and disposable incomes interested in trying new and innovated products.
Emphasizing the more for less value proposition, all the benefits that the Solar Coleman gives
consumers at a low price, compared to other manufactures that offer solutions to charging
devices. This will appeal to this group because it offers a great life-time warranty, provides a
solution to charging devices while in the outdoors, creates a secure and ease of mind to the
consumer.
Marketing Mix
Pricing
Solar Coleman will be priced at 149.99, when determining the price we considered two
factors. We looked at the average cost that Coleman charges for their coolers it is $
49.99(Coleman, 2014). Then we looked at what, Goal Zero, is charging for their solar portable
charging solution and their price ranged from $ 99.95-119.99. At the price of $149.99 it will be
very attractive to our targeted market using the value proposition of more for less really pushing
all the benefits that the Solar Coleman offers.
Distribution
The distribution channels will include using a conventional marketing channel, “one or more
independent producers, wholesalers and retailers, each a separate business seeking to maximize
its own profits” (Kotler & Armstrong, 2012, p.345). We will have our product available directly
through manufacturer Coleman (business to consumer), and also available in stores (business to
business) thus distributing through multiple channels. Solar Coleman will obtain raw material
and parts needed to manufacturer the cooler from suppliers as well as manufacturers. Solar
Colman will be available through Coleman’s website, catalogs, and a telephone so that
SOLAR COLEMAN MARKETING PLAN 24
consumers will be able to directly obtain the product from straight from the manufacturer. We
will partner up with Costco as a reseller of our product initially. Costco was chosen as the store
to distribute our product because they are well established, trusted by consumers, they have the
customers that have mid-to-high and disposable incomes. According to Costco’s company
profile, there are 663 warehouses and the following store locations worldwide:
Areas of operation: 468 locations in 43 U.S. States & Puerto Rico;
88 locations in nine Canadian provinces;
26 locations in the United Kingdom;
10 locations in Taiwan;
11 locations in Korea;
20 locations in Japan;
6 locations in Australia;
33 locations in 18 Mexican states;
1 location in Spain
Store Location Information courtesy of Costco Investor Relations, (2014).
Marketing Communications
Advertising, online marketing, public relations, sales promotion, events and experiences
will be our main ways of communicating. We will inform our consumers and gain product
recognition among our market. Creating an excitement regarding the new and innovated solar
Coleman cooler will attract many to recognize and will lead to them trying our product.
Conducting online marketing we will have a web-site, online social media, mobile
marketing, e-mail, online ads and promotions. Through our website consumers will be able to
provide information regarding our product as well as options to purchase the Solar Coleman. We
will utilize social media, (Facebook, Instagram, Tweeter, Pinterest, Google+ and ECT.) to
promote, advertising, public relations, direct marketing, viral marketing, offer sales promotions,
contest, and to promote events the Solar Coleman cooler. Using social media we will share
pictures and demonstrate our product works also have users share their experience with Solar
Coleman cooler. Our target markets are people with an active lifestyle that have small devices
that need charge, helping them stay connected with social media. Mobile marketing will focuses
on-the-go consumers utilizing their mobile phones, smart phones, and tablets to engage
SOLAR COLEMAN MARKETING PLAN 25
customers and help them shop. We will utilize e-mail as a communication tool and use it as a
direct marketing medium. Solar Coleman online ads will appear as consumers are browsing the
internet they will appear in search-related ads.
We will make a short video demonstrating how our product works and launch it through
YouTube focusing on informing consumers about our product. According to Adroit Digital
“68% of respondents would be more influenced by a short video than a text-based ad when
seeking new product information” (AndroitDigital, 2014). Our consumers would most likely
look us up on YouTube and watch a video regarding our product verses reading material on our
cooler. Adroit Digital has found that the traditional television has lost popularity among the
United States and YouTube is now more popular according to a survey of 2,000 people
(AndroitDigital, 2014). We have a wide range of consumers therefore we would also launch a
traditional commercial, make it available through YouTube as well as the television.
We would build public relations using the media to promote press releases. Initially to
inform our audience of new and innovated product that will be coming out into the market. Also
to keep consumers informed of promotions and contest that we have going on.
We will launch a sales promotion issuing a $10–off coupon, on the third year once our
sells begin to decrease, and really focuses on the savings that the consumer will be getting.
Among a study conducted by Dr. Paul J. Zak, Professor of Nero-economics, Claremont Graduate
University, people who receive $10 coupons, were happier with their purchases, have 38 percent
higher Oxytocin levels, 32 percent had calmer breathing rates, 5 percent slower heart rates, this
helps show how there was a decreased in stress (Medical Post, 2014). Making the coupon limited
after the third year on the market will increase sales by attracting consumers, by creating a sense
of urgency and really stressing the savings.
Events and experiences that Solar Coleman will also focus on will be sporting events and
trade shows giving us a chance to demonstrate how our product works. To inform more
customers of what our product is and gain recognition among consumers. We will make working
displays to demonstrate how our product works in stores. We will appear at sporting events,
concerts, festival and have a working display of our product and share how our product works
and for them to be able to gain hands on experience with our product.
Marketing Research
SOLAR COLEMAN MARKETING PLAN 26
Initially Solar Coleman began by finding a solution that addressed charging small devices
while outdoors. Primary research began by conducting an online survey through survey-monkey
among the general public which helped us focused on whom our targeted market would be. The
survey provided useful information on demographics, age, geographic, income, activates and
interests of the general public. Our research included online- and textbook-research on utilizing
solar rays to conduct energy, and finding a product that would generate enough energy to charge
small devices. Utilizing online research, textbook and our online survey the majority of our
information was found.
For ongoing marketing research Coleman will utilize Costco Wholesale’s vast customer
data base to target customers which fit our market segment. Additionally website and social
media will provide vital information on customers’ interests, lifestyles, and tendencies. This
information will be a guiding light for future marketing efforts. Furthermore, benefiting from
Jarden Corporations vast resources, Coleman’s in-house Market Research, Promotions, and
Marketing Strategies departments will focus marketing efforts on the most attractive potential
consumer.
FinancialsBreak-Even Analysis
The following table is a projected break-even point, $10,153, for the cost of marketing,
both fixed and variable, for the Solar Coleman. Coleman Company will break even within the
first year of sales with 189,215 units sold.
Figure 61: Break-Even Analysis
1ST. QUARTER 2ND. QUARTER 3RD. QUARTER 4TH. QUARTER 1 YEAR 2 YEAR 3 YEARUNITS 47304 23652 47304 70956 189216 217598 243710
149.99$ 149.99$ 149.99$ 149.99$ 149.99$ 149.99$ 149.99$ SALES 7,095,126.96$ 3,547,563.48$ 7,095,126.96$ 10,642,690.44$ 28,380,507.84$ 32,637,584.02$ 36,554,094.10$
$-
$5,000,000.00
$10,000,000.00
$15,000,000.00
$20,000,000.00
$25,000,000.00
$30,000,000.00
$35,000,000.00
$40,000,000.00
1ST.QUARTER
2ND.QUARTER
3RD.QUARTER
4TH.QUARTER
1 YEAR 2 YEAR 3 YEAR
Mar
ketin
g Do
llars
Total Sales
Break-Even Analysis
TOTAL FIXED AND VARIABLE MARKETING COSTS SALES
SOLAR COLEMAN MARKETING PLAN 27
Sales Forecast AnalysisThe Sales forecast table takes into consideration the distribution excellence of Costco
Corporation and its 657 locations worldwide. For first quarter sales, calculations were made to
supply all Costco locations with an introductory two month supply, or 47,304 units. Sales would
be promoted by all the various advertising strategies implemented. Second quarter sales would
replenish some of the sold product and increasing sales for an additional month supply of 23,652
units. For the third quarter sales figures, Costco locations would receive an additional two month
supply of 47,203 units. Fourth quarter sales, along with market buzz and customer demand,
would increase to a three month supply of 70,956 units. First year sales are expected to reach
189,216 units. After the first year, we expect a 15% increase due to emerging technology
availability and increased customer demand. Third year sales are expected to decrease to 12%,
due to market saturation and competitive firms seeking to enter the market.
Figure 17: Sales Forecast Analysis
Marketing Cost Breakdown
The following table illustrates both annual fixed and variable marketing costs associated
with the Solar Coleman. Coleman Company is wholly owned by Jarden Corporation. Jarden has
“over 120 brands which primarily focus on Outdoor Solutions, Branded Consumables and
Consumer Solutions”(Jarden, 2013). With annual gross sales totaling $2,724.4 million, it is
estimated that Coleman brand accounts for 4% of the revenue, or $108.976 million. Of this
amount, it was calculated that the typical marketing budget is estimated at 20% of gross sales
however, the average 20% marketing budget is spread across all the company product offerings.
We chose to only allow 10% of gross sales, or $10,897,600 because it is a new and innovative
product that will launch on a global scale. If the Solar Coleman was to be marketed solely in the
United States, our marketing figures would have been greatly reduced. The strategic alliance
with Costco allows the Solar Coleman to be sold and available worldwide.
1ST. QUARTER 2ND. QUARTER 3RD. QUARTER 4TH. QUARTER 1 YEAR 2 YEAR 3 YEARUNITS 47304 23652 47304 70956 189216 217598 243710UNIT SALES PRICE 149.99 149.99 149.99 149.99 149.99 149.99 149.99SALES 7095126.96 3547563.48 7095126.96 10642690.44 28380507.84 32637584.02 36554094.1
SALES FORECAST
SOLAR COLEMAN MARKETING PLAN 28
Controls
The variables that you intend to measure to monitor your progress and eventual success
and how they will be monitored should be itemized in this section. These variables need to relate
to your Marketing Objectives as well as your Marketing Strategy and Marketing Mix.
Solar Coleman will be keeping track of all of the customers that they talk to during events, to
evaluate how effective these events are in promoting their product. Solar Coleman will look at
the results of e-mail online marking and evaluate the effectiveness of those techniques by
evaluating how many people bought the product through an e-mail link. Solar Coleman will keep
track of what consumers have to say about their product through social media in order to keep an
innovated product, based on customer feedback will implement changes as needed. Solar
Figure 18: Total Fixed and Variable Marketing Costs
SOLAR COLEMAN MARKETING PLAN 29
Coleman will monitor the geographic region and population that are purchasing their product, so
that they can implement their products in store in those regions. Solar Coleman will be analyzing
what types of people are purchasing their product, to evaluate if changes need to be made in the
marketing approach or if we are targeting the right consumer. We will evaluate our 1st quarter
sales goals to actual and see if we need to implement any changes to our marketing strategy. To
meet our sales goal of 70,956 to meet our breakeven point, we will rely heavily on online
marketing, public relations, word-of-mouth, and events.
Implementation
To make the Solar Coleman a reality, we need to find a partner to provide Coleman with
the components need to equip the coolers with the solar panels and charging parts. We need this
manufacture to provide us with the lowest possible price for the components to keep the end
price of each cooler as low as possible to be more appealing to the consumer.
After we get a finished product we plan on testing the product and getting initial feedback
from consumers through test marketing ventures such as a trade show or displays in stores. This
will allow us make changes to the product as needed according to the feedback before launching
the product worldwide.
Once we get a finalized version of the Solar Coleman we plan on beginning mass
production on the product and immediately launching it through Coleman’s distribution network
including retailers such as Costco as well as selling it online through Coleman’s site allowing
customers to buy it directly from us while cutting out the middleman.
Marketing Organization
Solar Power Coleman marketing department structures that the marketing department of
solar power Coleman consists of two groups that will make Coleman successful to locate the
weakness and strengths of the company.
The Marketing manager responsibility is to direct the marketing approach that will
include messages to website articles that will advertise Solar Power Coleman. This will target
audiences who are interested in this product. The manager will be in charge of reports that will
manage programs.
A Marketing Researcher will utilize market researchers to find information about a target
audience for Solar Power Coleman to find but also find competitors in the market. The market
SOLAR COLEMAN MARKETING PLAN 30
manager will find tools to such as surveys, groups that will find the focal point of information
that can help Solar Power Coleman succeed in this current market. “Marketing Communication”
Contingency Planning
Solar Power Coleman contingency planning may have a risk of losing key employees
damage to production, and failure in the quality of the product. We need to make sure that we
fulfill all requirements of all regulations so we many not encounter any legal actions. In our
contingency planning we need to address all business-critical operations, identify risks,
prioritizing risks and we will develop a risk impact and probability chart. This will help us to
balance and analyze any foreseeable risks that can impact our company and to have the essentials
to survive in case of any problems arising. The planning can provide solutions for any
unexpected events that can hurt the company because consistency will be very important
because following through with the plans will insure the company that we are doing our due
diligence to protect the our assets. The contingency plan has to have a: goal, time periods,
implementing the plan, keeping the plan simple, being able to decide which plan to implement
at the time of need, fulfilling everyone’s needs, how will the plan be successful, including
standards operating procedures, manage risks and identifying operational inefficiencies.
SOLAR COLEMAN MARKETING PLAN 31
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SOLAR COLEMAN MARKETING PLAN 32
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