Coffee lovers everywhere will rejoice at our new product line up. Company G has finally released a long awaited small appliance line. In this line is the highly anticipated Home Barista, a coffee pot with touch id technology that gives you the perfect cup of Joe every time. No more waiting in line and paying $5 per cup of coffee. The Home Barista makes morning coffee runs as easy as a touch of your finger.
Through previous product launches and it's brand identity, Company G has established itself among its competitors as a leader in the electronic market. Company G has shown through testing and prototyping that this small appliance line will be one of the most reliable, and innovative products in the market. We pride ourselves on following our mission statement with our new product the Home Barista of our small appliance line in the idea that it will add a convince to our consumers life they did not even know they needed.
The Home Barista will have several preset functions of coffee- americano, latte, cappuccino, etc. with various types of ingredients, which the consumer will purchase separately, all of which will be customizable under settings and recognized to the touch a human finger print. Using the same technology that Apple uses on their products for security log ins, it will be easy for the consumers to understand. Making complicated ordering, waiting, and misspelling of your name a thing of the past. Our consumers time is the most valuable asset that they have; We at Company G would like to improve their lives with our products which in turn will save them time and money. As stated in our mission statement above, we believe that the Home Barista will improve the morning, afternoon, and if necessary nightly coffee breaks our consumers may have. Our product will speed up the time our consumer spends by having a preset function for each individual it serves, and will allow for consumers to speed up their morning process by not waiting for the coffee to brew, adding their necessary ingredients, and then measuring contents. Home Barista will have your morning coffee done in just a touch. Ideally, our target market would be anyone who drinks specialized coffee, specifically at larger chain restaurants and coffee shops. We will include the target demographic to be consumers ranging in age 20-35, specifically millennials, who have at least a four year degree, and make above $35,000 annually. This target market will be our main target but we will factor in for people outside of this demographic to purchase our product because of its unique features. When we first release the Home Barista, we expect the competition to try to recreate our product at a lower cost— due to our in house prototyping and competitive marketing strategy we have already begun working on how to combat these products since it will be the first of its kind. We do expect some difficulty since this is such a specialized product. We do plan to set patents in place to combat all of these potential rivals. We also expect that the chain coffee stores will try to compete with our product, we will expect this difficulty as it comes with marketing campaigns about the ease and comfort of our product. Due to the advance mechanics and complexity of the Home Barista we expect new entrants to enter the market eventually, there is no immediate threat. We plan to establish a system of promotional items to phase out the Home Barista when we launch a new prototype to stay a step ahead of any possible new entrants. The main threat of buyers would be that this could be considered a luxury product and its not a need for many consumers. There is little to no competition in this market with a similar product so consumers will not have many other options to buy. Since this is a luxury product we will consider doing discounts, and promotional pricing to attract different demographics. Since this product does require so many technical parts that can only be purchased from new specific suppliers we expect them to have more bargaining power than normal. We maintained great relationships with our previous suppliers so expect to achieve those with these suppliers as well. Since the threat of substitutes is so high because this is a unique product with a very specific demographic. We expect competitors to release similar products at a lower cost. We plan to continue prototyping and researching ways to improve Home Barista as soon as our first version is launched. As time progresses and we phase out other versions we will offer a buy back promotion, a replacement warranty, and discounts on accessories. Since Company G has been in the electronic industry for a while they have created a strong brand identity*, which allows for consumers to recognize the brand logo, when launching a new product it is important for consumers to trust the brand. With our reputation, and especially brand recognition, we expect this to be a key component of our success with the small appliance line.
With the established brand identity,* we also expect our current consumers to be attracted to the new line of product. We have worked hard in all areas of our consumer relations so we expect our consumers to stay loyal to our brand with the new product launch.
Since we have spent several hours, and days on prototyping and researching our product, the demographic, and creating the new line to insure its uniqueness. We are sure that developing new products and improvements will continue in house.
Since Company G is moving into a new target market and industry sector, this will be a challenge. We expect our in house prototyping to pay off because of the high level of research of the consumer we are trying to reach as well as the industry research.
Since the product requires Company G to reach out and obtain new suppliers. We expect their bargaining power to be higher because we need certain products to manufacture this product. We expect to overcome this weakness since we have always had great relationships with our suppliers.
The last weakness we have accounted for is supply and demand. Since we only can pre-produce so many products because of factory space we expect this to become an issue when we begin mass selling our product. We plan to introduce our product and have a set number for each production channel to combat this weakness.
One of the greatest opportunities we have to showcase our consumer is that this product will save them money in the long run. Most of our consumers, if not all spend $4-9 on specialized coffee per day.
Since we are working with new suppliers, we have the opportunity to a whole new networking partner, and potential consumer base. We plan to work on these relationships to turn our partners into consumers.
Since we have never worked in the small appliance sector, we have the opportunity to turn those consumers into consumers for our other larger appliances.
The largest factor of success or failure of our Home Barista is the economy. Since this product could be considered a luxury product and not a need. If the economy was to go into recession then we could also see the effects of that through our sales.
The second threat we are addressing is the competitors making a similar product. While we do not believe the product would be much cheaper due to product margins, we expect our competitors to make a comparable product.
While there are many positives with new suppliers, they also possess the ability to control our product distribution, and slow down production process. Because we have never worked with these suppliers we will have to ensure that they are not going to back out of the contracts, or become greedy with the profit margins.
Launch Home Barista in 4 retail stores by the end of the first quarter of 2019 (2 months after product releases online).
Price for the Home Barista Jr will be $35 for the home brew machine only, this will not include the coffee type that will be sold separately. The Home Barista OG will be $50 and will have more options for coffee brew styles than the jr. We will also have starter kits for both of the barista which will include a various types of coffee, brew suggestions, creamers, and flavor packets.These will be an additional $25 for the jr ($60 total) and the OG ($75 total).
We hope to sell 15,000 of each unit in online sales before launching it to retailers in quarter 2. Contract with Amazon/Whole Foods by the end of Q3 for in store distribution and online market place. Contract with Amazon/Whole Foods by the end of Q3 for in store distribution and online market place. Create social media marketing strategy by June 2019 to interact, manage, and maintain customer interest in product and have a direct communication channel with consumers. Home Barista will come in two sizes the JR and the OG. The JR will be perfect for college demographic or the uprising tiny house owners, whereas the OG will be loaded with more features and will be a perfect addition to any kitchen
Both Home Baristas will have a touch ID with a memory chip to allow consumers to customize their coffee specializations.
Packaging will contain the logo and brand markings of Company G so that the consumer can easily recognize the brand and product. Whole Sale pricing: We will offer discounts at contract discussion to stores who pursue certain units of the Home Barista. By offering a volume based discount stores will be encouraged to purchase more at a lower cost to increase their profit margins.
Price skimming: Since we have no competitors in our market with a similar product right now we plan to maximize our profits on our early consumers and then introduce new products as we phase out the variations of the products later on.
Bundle Pricing: We will also use this pricing strategy by using our partners to offer bundles and discounts on variety packets, sample packets, and starter packs.
Dual Distribution: We will sell to consumers directly and through larger retailers like Target, Amazon, Etc
We will start with a selective distribution strategy when the product is first released but we will move to an intensive distribution strategy based on sales performance
We will also host “trunk shows” or “Demo parties” at selective home goods and home appliance stores so consumers can interact with the product before purchasing.
Social media marketing: This will allow us to have a direct communication channel with consumers and allow our outreach to assess thousands of people
Infomercials: This tactic will truly allow consumers to be able to watch how seamless and easy the product can be used.
Coupons and promo codes: This will be for the consumer who wants to feel better about a splurge product like the Home Barista
Based on our projected growth, target market, and listed objectives these strategies will allow us to grow and expand on our target market. The design and pricing of the product will be key to attracting consumers. Our pricing techniques will make the product price desirable to the consumer as well as the retailer. Our placement strategies will allow us to keep our cost low while keeping our product in front of our consumers. With our promotional channels we will have a wide range of ways to target each type of consumer.
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