The paper “ CircuitTree ‘ s Marketing Strategy" is a wonderful example of a case study on marketing. Since the market is highly competitive but the product fits the company’ s strategic objectives, it is projected that it will gain market share within the first two years and then stabilize within the next three years. Within the next five years, CircuitTree should compete directly with some of the established names in the industry. The marketing component of the company is under pressure because it still lacks the advertising capabilities that most of its components enjoy (Perreault, Cannon and McCarthy 23). The gaming industry, especially, the educational toys segment, is dominated by a few competitors that rely on aggressive marketing supported by enormous resources to stay competitive. In terms of marketing, the firm aims to achieve the following: Target high-growth markets, since research, shows that children between the ages of 6 and 11, who can afford the product, are from privileged backgrounds. Rely on affordable (alternative) marketing strategies (e. g., word of mouth) instead of mainstream methods to popularize the product. Align the marketing component with the strategic component.
This means streamlining both aspects to reflect the company’ s overall objectives. Build brand loyalty within the first two years.
Brand loyalty will help the product prevail over other, more established or expensive offerings. Use effective customer relationship management (CRM) to market the product. Product Strategy Positioning Statement CircuitTree has been developed using exceptional engineering and educational expertise to enable children between the ages of 6 and 11 to enhance their understanding of academic concepts. The game is particularly designed for dynamic and knowledgeable mothers who would like to accelerate their children’ s academic development and ensures this through the latest features and tailored design. The product strategy is based on differentiation. The product is aimed at a small category of customers who can afford it rather than the mass market. A niche market supports Voltree’ s differentiation strategy that limits the product’ s availability to the desired age groups. The product will be sold strictly to the customers specified in the marketing analysis as a way of developing a niche market. The design and presentation of the product is a vital aspect of the product strategy (Proctor 43). Unique hardware and software features distinguish the game from others that are already in the market. Summary of the Product Strategy Unique, unprecedented design, both in software and hardware. A user-oriented approach supported by a user-friendly interface. Excellent support services, which are available online or in stores located around the country. Flexibility; this allows users to reconfigure the hardware and software without compromising performance. Games can be used across all ages specified with consistent results. Pricing Strategy As indicated in assignment 1, the proposed price of $29.99 will allow the firm to compete favorably with larger and more established firms. The price is indicated by the fact that although LEGO and Mega Brand two companies that dominate the market, can significantly influence customers’ buying decisions, they are less focused on STEM (science, technology, engineering, and mathematics) oriented toys, while Voltree is. This scenario informs the notion that the pricing will allow Voltree to operate in a niche market in which it can protect its consumers and pricing from aggressive competitive strategies preferred by larger rivals. More importantly, the pricing is inspired by a number of strategic considerations that will have a huge impact on CircuitTree’ s success: Current Profit Optimization: The pricing will optimize current profits while considering revenues and expenditure. Survival: In case of overcapacity or industry decline, the pricing will allow the Voltree to cover expenditures and remain in the market (Baker 29).
In such cases, which are unexpected but planned for, survival will be prioritized over returns. Status Quo: The pricing strategy will enable the company to achieve price stabilization to steer clear of price wars and maintain average but consistent profit levels (Pride and Ferrell 36). Quality Leadership: Voltree can use the pricing to insinuate high quality and market CircuitTree as the quality leader in the STEM toy segment. Quantity Maximization: In the future, the pricing will allow the company to optimize the number of units of the game it sells or the number of consumers served with the objective of reducing long-term costs (Samson and Daft 34). Overall, the pricing is guided by strategic goals, competition, and market forces.