When we launched mini handy washer, we will facing some competitors likes LDD, Haier, AQUA, Magic and KEMEI. They also have sold this product but our product have new function to improve the efficiency. Haier Codo washing machine is a first pocket washing machine in the world. Haier Appliances (India) P. Ltd is a subsidiary of Haier Group in India (Businesswireindia.com, 2015). Haier Codo washing machine made in China and launched in India, after that it launched online on 26th July 2014. These product can buy through online, but its market normally in China, India, Korea and Japan, but not in the Malaysia's market.
What are the different between QUEE and other competitors? LDD, Haier Codo, AQUA, Magic and KEMEI are using 3 AAA batteries, but our product is using USB. This is very suitable to modern people, because it can reduce purchase batteries and reduce chemical reaction. As the same time, using USB is a good choice for user, because quality of batteries will affect its performance. In addition, our product have an additional function such as touch light and dryer. Dryer can immediately dry up wet and thick clothes. For the internal liquid detergent, only our product, QUEE and AQUA. It is easier to clean up the stains on the clothes. User don't need to bring along the liquid detergent. They just need to refill the liquid detergent into the container before going out. The disadvantages of the other brands is ,using cotton swab to rub the stain part on the clothes.
Pricing is set for the product in terms of value and it should be able to make reasonable profit. The price of the product must be observe before the price is set for the product, so that the consumer will be able to purchase for the product.
When we start to do analysis on the pricing of the QUEE handy washer, we must calculate the costs of product, estimating what benefits can be given to consumer and might be able to earn profit at the same time. Other than that, we need to compare our product's function and service with other competitors. The cost of our product includes materials such as mini fan, motor, tube plastic or others, labour, freight costs, selling costs and administrative costs.
The prices of the products from the other brands are in between RM 120 and RM 400. Assume that the first shipment of our product with the amount 100 about cost of RM30 each, we will mark up for about 50%, so the price of the product will be about RM70 -RM80. When the demand of the QUEE handy washer increases, the price of our product will be reduced.
We decide to use the strategy of Market Skimming Pricing in first shipment of our product. We using the luxurious design to attract consumer who are willing to pay the higher price to purchases QUEE handy washer. After that, when we expand the market of product and increase demands, we are able to reduce the cost. So that we can use the strategy of Market-penetration pricing to strengthen our market and customer group.
3. Advertising and promotion
Advertising and promotion is a pipeline to attract and encourage consumer to purchase the product and it will be most effective way to reach company's target market. Company through advertising and promotion to complete the product life cycle, including introduction stage, growth stage, maturity stage and decline stage.
We need to choice some better advertising to promote and introduce QUEE handy washer to consumer, to let consumer aware our product and the advantages of the product. For QUEE handy washer, we decide to use internet, television, newspaper or magazines to introduce and promote our product. Nowadays, high technical product such as internet and television can assist us to disseminate our product in efficiency. Newspaper is a cheap and popular pipeline to advertise to the public, and the colourful picture of magazines will attract the attention of consumer and increase their desire to purchase the product. We also will choice billboard to promote our product in the main building of downtown area.
Simultaneously, promotion is a short term incentives or activities. Sometimes, sales promotion activities are called “below the line” activities. Sales promotion can be included consumer, business, retailer, wholesalers and sales force promotion. We need to do promotion to attract and increase the desire of consumer. Consumer promotion activities includes offering free samples, coupons, display, points of purchase, free gift and product demonstration, it will attract they purchase QUEE handy washer. We also can through the marketing materials such as business card, services sheet or brochures and publically avenue such as special events or product launches. For the wholesaler, we can give the trade promotion such as bonus stock or reward incentives linked their purchase or sales. We also can give the commission or run a sales competitions with awards and prizes.
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