Marketing Plan for Light Bottle - Case Study Example

MODULE TITLE: Marketing Across Boundaries. MODULE CODE: BU7702. MODULE LEADER: Aneetha Sundram. ELEMENT NUMBER: Assignment 2. Light Bottle The light bottle is a household lighting device that uses transparent plastic bottles to provide indoor safe, free and ecological sustainable lighting for small households. The bottle is filled with water and a small amount of cleaning bleach to prevent the growth of algae that may lower the lifetime of the light bottles use. The light bottle is hung through a gap in the rooftop refracts sunlight to deliver as much light as a 50-watt conventional bulb in full daylight(Oshima, 2015). If properly installed, a light bottle can last 4-5 years. With the current high rates of electricity bills, this light bottle is expected to cut the bills by a tremendous amount. The light bottle will use very little amount of money to make, it will be made from recycled soda or water bottles. This will be acquired at a cost near to zero from public dump sites and streets. The light bottle is an alternative for lighting in small outdoor structures like camping tents, boat houses, or any other structure that may require lighting away from the main grid. From the low cost of making the light bottle, it's expected to be sold at a low price too, targeted customer groups will find it a very nice alternative to the mains electricity, gas lamps, and other expensive modes of lighting. Hence, the light bottle will be quite a success in the market. A similar method of lighting is already in use in some low-income countries. It is mainly being installed in poor homes especially in slum dwellings where the owners can't afford for other lighting methods with their very small incomes. The projects have proved a success and are being implemented in more countries, however, it has not been commercially manufactured for other households to install. That's why producing it commercially for middle-income users will make it a success. Marketing plan(Entrepreneur, 2001) Executive summary The light bottle is a very good alternative to the commonly used electricity bulbs that have proven to be expensive when it comes to paying the bills. It's a device made of just a transparent light bottle filled with water and very small amount of household bleach. The device is suitable for small structures that have a thin wall or rooftop, this enough to allow the light bottle to be fitted into. Target Market. The light bottle is intended for use in small structures that nearly everyone has, be it the garage outside, the water decks near the river, the dog kennels or simply any room that has a thin wall or thin roof with direct sunlight. The device will be initially intended for middle-income customers who will be willing to forgo other modes of lighting to cut the high costs they incur. However anyone willing to explore the diversity of the invention can try the light bottle. Competitive advantage. Being a superior alternative to the mains electric bulb, the light bottle will be a favorite choice for its intended customers. When it comes to outdoor lighting like camping, it will beat down the gas lamps and the rechargeable lamps. The light bottle will be made known to its intended customer through adverts in travel site, social sites and billboard in major towns. With it being a unique product, most people will want to try it. Positioning statement. The light bottle will be seen as a necessity for the middle-income customers, an exploration adventure for the prestigious customers. Therefore, the product will be a choice for anyone. Anticipated sales, profits and market share. The light bottle is expected to quite a success and therefore the sales will be tremendous, with the initial production, it's expected that there may be a higher demand than the amount produced, however, a pre-order will be started for the next production. The components of manufacturing the product are highly available at a very low cost. Hence, the profits will be quite high. Being a product not yet introduced commercially, the company will enjoy the largest market share. However, as time goes by, it will be expected of other producers to introduce their own kind of the light bottle. But with the company being the initial one to introduce the product, it will still enjoy the preference of the customers. Goals and objectives The main goal of the light bottle is to provide an alternative to household lighting for low and middle-income customers. Penetrating the energy industry from a different and unique angle. The energy industry is difficult to join for upcoming producers, therefore joining it with this product will make it easier for the company to introduce more advanced energy products to its customers. The Light bottle is one of its kind, not yet introduced in many countries like the UK. Providing a better way for use of the plastic bottles that are a hazard to the environment if disposed wrongly. For a long time, environmentalists have been trying hard to campaign on stoppage of use of plastic materials, else recycling them. Coming up with this product will better the conservation of the environment(Healey, 2008). Reduce the risk of electricity accidents that occurs where using electric bulbs (Krishnamurthy, 2014). Also, the light bottle has no carbon emission like the gas lamps. The introduction of the light bottle will bring in enough capital to produce more advanced products. Providing jobs for unemployed individuals and part-time student who are willing to earn while they study. Environment Analysis. Economic environment The product will be retailing at a lower cost than the ordinary lighting modes, therefore consumers will find it cheaper to purchase it than the other lighting alternatives. The targeted consumers are expected to buy small units of the light bottle for testing, thereafter, they will be expected to come back and buy more of the product after finding it helpful. The purchasing power of the intended consumer is mainly affected by the level of their income, the tax levied on their incomes and the cost of alternative lighting. Producing the light bottle will not require a lot of manpower, there is no special skill required to manufacture, therefore any able person can be hired to work. So it will be very easy to find staff. The targeted persons will be students and those looking for other jobs, they can work part time jobs. It is expected of the consumers to influence others to buy the light bottle after using and benefiting from its use. Other consumers will have the confidence to acquire the light bottle also after seeing their friends use it. Social environment Consumers of the light bottle are families and friends out for camping, most of the users will be in their middle age, that is those who are starting families and having their first jobs. This particular group of consumers is very social, they mainly interact through friends gatherings and social sites. They are at their productive age and are highly influencing. Technical environment. With the high rate of technological change and innovations, the company is aware of the change in trends in the energy industry. The ICT industry in the other hand is advancing at an enormous rate, this could be a threat if other companies in the energy industry go for technological alternatives, like the LED bulbs which are also cheaper in terms of cost of use. However, the company will make plans of blending the use of the LED light to the light bottle to produce a competitive alternative. Industry environment. At the moment, the only similar substitute to the light bottle is being used in poor countries as a source of light in the slum dwellings. But in the UK its has not been introduced yet. The only competitive alternative is the portable solar lamps. However, the light bottle has a major advantage to this solar lamp, it's cheaper to make the light bottle than to produce the solar lamps. There are yet no new entrants in the market with a similar product for now. Later on, it's expected that a lot of producers will opt for a similar product. Competitive environment. The producers of the portable solar lamps are the biggest competitors to the light bottle. They have produced a smaller, lighter alternative to the light bottle. At the moment, there are just a few competitor, including LED bulb producers. The market is large enough to support all the available competitors. Political environment. The government supports innovations. New investments like the light bottle will bring a lot of returns to the government in terms of tax, therefore, is hopeful of support from the government. To back that up, producing the light bottle is environmental friendly, therefore the local government will be more than delightful that there will be free disposal of plastic bottles. It is also a requirement to license the company just like others. Target market profile and segmentation market segmentation (Engel, Fiorillo & Cayley, 1972). The target market is comprised of three groups of consumers; Small household owners – this group probably will own a small house/structure outside their home, could be a children playhouse or a farm store. They will purchase the light bottle to install into this houses. Campers – this are people going out for a hike or touring far places, they will use the light bottle to light up their camping tents. Target market profile. Demographics. Age range: the targeted market is bound within the age range of 20-60 years. Gender: The light bottle's target market is not gender specific. Geographical location: The target consumers are mainly located in suburban areas, their population is medium dense. The targeted areas are those that have enough sunlight to light the light bottle. Level of education: The target customers of the light bottle are those that are learned. This group can be able to read and write. It makes it easier to reach out to them through adverts. Occupation: The light bottle's target customer are both employed and unemployed. Income level: This product is targeted to people of medium and low income. However those of higher income can also get the light bottle. Family structure: the customers of the light bottle will mainly be those with young families. Lifestyle and Hobbies. The customer are explorers, they like trying new thing like the light bottle. They will buy the product to try out how it works. Also the customers love spending time outdoor, probably camping or hiking. Morals and values. The customers are social and interact with age mates through social sites and parties or other friendly gatherings. Paint points. The market targeted for the light bottle have people who have trouble with paying the electricity and gas bill. They are eager to get an alternative so as to cut down the amount of bills they pay. The light bottle is intended to cut the cost of lighting for the target consumer. Shopping habits. Customers in the target market like doing their shopping during weekend. When they are free from the weekday work. They will also shop whenever they require an item. These people will do their shopping in large retail shops, where they can compare prices from the varieties available. However they can also buy items at the nearest local shop/store. Marketing and positioning strategy Marketing strategy The light bottle will be made knows to intended consumers through the following Advertising in social sites, sales point and travel websites (Facebook, 2015). Customer selling, where those who buy will recommend it to their peers. Through sales promotions Website (Gordon, 2014). Positioning strategy. The production factory will be situated in places that are accessible its raw material (plastics bottles and water) in addition it will be situated near residential places for easier travel of staff. The Intended location is near living quarters of suburban dwellers. Marketing budget The marketing budget will be 10% of the totals sales revenue. This is because the product is very new to the market (Bradač & Rebernik, 2015). Contingency plan The major risks to the business are competition from the solar lamps, the threat comes in if the companies producing them lowers their prices to fight back the light bottle. This risk has been looked upon by maintaining a low cost of about half the retailing price of the portable solar lamp, low enough that the companies can't lower their prices to that. References Bradač, B., & Rebernik, M. (2015). Module 4: Idea evaluation methods and techniques. Module: Idea Evaluation. Retrieved 22 May 2015, from http://www.creative-trainer.eu/fileadmin/template/download/module_idea_evaluation_final.pdf Bridge, S., O'Neill, K., & Cromie, S. (2003). Understanding enterprise, entrepreneurship, and small business. New York: Palgrave Macmillan. Clow, K., & Baack, D. (2004). Integrated advertising, promotion & marketing communications. Upper Saddle River, N.J.: Pearson Prentice Hall. Crawford, M., & Di Benedetto, A. (2008). New products management (9th ed.). Singapore: McGraw Hill. 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The Marketing Budgeting Process: Marketing Management Implications. Journal Of Marketing, 51(4), 45. doi:10.2307/1251247 Sbdcnet.org,. (2015). Small Business Marketing Tips - SBDCNet - SBDC Clearinghouse. Retrieved 23 May 2015, from http://www.sbdcnet.org/small-business-information-center/marketing-2 Williams, L. (2015). Liter of Light's solar-powered, DIY lamp made from a plastic bottle is transforming lives. The Independent. Retrieved 23 May 2015, from http://www.independent.co.uk/life-style/gadgets-and-tech/features/liter-of-lights-solarpowered-diy-lamp-made-from-a-plastic-bottle-is-transforming-lives-9993728.html Read More