Project Overview
The context of the project will be your marketing analysis for a product/service with a launch date that occurred in 2015/2016 or will occur in 2016. If you want to modify the context of the project to fit your own business or where you work, let me know as soon as possible. The following is a partial list of sources where you can find new product launch information:
http://www.prnewswire.com/
https://www.thisoldhouse.com/toh-top-100-best-new-home-products-2015
http://www.supermarketguru.com/reviews/
You are not required to get your product/service context from any of these resources.
Due Dates
Part 1 Draft (SWOT - Customer Satisfaction): October 20
Part 2 Draft (Product Strategy - Customer Loyalty): November 17
Final Draft: December 15
Notes
Note 1: Secondary research should be done throughout the course of this paper. You do not necessarily need support for every single one of your recommendations but, there should be supporting evidence for the majority of what your write. In other words, you do not want to just write what seems like a good idea. You want that good idea supported by strong evidence that it is, in fact, a good idea. Some sections like the SWOT analysis and sections that rely on competitive analysis will need more secondary research than some other areas of the paper.
Note 2: For the customer loyalty program, your context can be the broader brand/organization if it is too unrealistic to write some or all of this section on your specific product.
Introduction
Write a short introduction to your project that includes the name and description of the product or service that you have chosen as well as the company that manufacturers/offers the product or service.
SWOT Analysis
1) Provide a succinct set of about five key factors in each area of the SWOT that you believe represent the most important factors to the organization in future planning as it relates to the specific product or service you have chosen for the project.
a) Internal - Strengths and Weaknesses
b) External - Opportunities and Threats
i) Economic Environment
ii) Technological Environment
iii) Legal/Regulatory Environment
iv) Political Environment
v) Social/Cultural Environment
vi) Competitive Environment
Segmentation
1) Define the market, sub-markets, and the specific product market in which your product competes. In this step, be sure to clearly state/explain the overall market, all sub-markets, and the individual product markets within the relevant sub-market.
a) Tip: The product market that you will segment needs to be broad enough that there are multiple segments but, not so broad that several product categories are included.
i) Overall Market: Transportation
ii) Sub-Markets: Planes, Trains, Automobiles, Watercraft...
iii) Product Markets: SUVs, Sedans, Minivans...
2) Understand existing segments and create new potential segments
a) Utilize the appropriate segmentation variables to create segments of customers for the product market.
i) Demographic
ii) Geographic
iii) Psychographic
iv) Benefits Sought
v) Behavioral
b) Create a segmentation tree
3) Evaluate the segments for viability
a) With each proposed segment complete the following:
i) Name the segment (Segment names should align with a profile of the typical member of that segment).
ii) Heterogeneous: Explain how the segment is meaningfully different from other segments
iii) Homogeneous: Explain how/why customers within each segment will relate to the product in a similar way.
iv) Measurable/Substantial: Provide evidence with secondary research of the approximate size of each segment.
v) Reachable: Explain whether the organization should be able to effectively distribute the product to the given segment.
vi) Actionable/Responsive: Is there sufficient reason to believe that the firm can create a clear marketing mix for that segment? Name at least one aspect of the marketing mix that will be unique to this segment and explain why it is important to members of this segment.
4) Construct segment profiles
a) For each of the proposed segments, create a segment profile:
i) Written description of the "typical" customer in each segment
5) Evaluate the overall segments for attractiveness
a) Financial considerations
b) Structural Attractiveness (Competitors and Distribution)
c) Strategic Direction fit with the firm
d) Marketing Expertise
e) Opportunity Cost (Range of other opportunities given up if this segment is targeted).
6) Select segments to target by referencing your analysis in previous sections.
Positioning
1) Demonstrate an understanding of all the attributes demanded by the market
a) List all attributes demanded/desired by at least one segment
i) Classify each attribute as either a search attribute, an experience attribute, or a credence attribute. (See the Services section for these descriptions).
2) Demonstrate an understanding of how the competition is positioned
a) Through research or other assessment provide a justified rating for each competitor on each attribute. Rate on 1-10 scale with 10 being the highest.
3) Demonstrate an understanding of how your product should be positioned
a) Through research or other assessment provide a justified rating for where your product is rated on each attribute.
4) Create a perceptual map
a) Select two determinant attributes and explain why these are the two of the most important factors in the decision making process for your target market.
b) List the relevant competition
c) Create scores for each competitor on each determinant attribute through research or other assessment. Rate on 1-10 scale with 10 being the highest.
d) Plot where each competitor falls on the perceptual map
Customer Satisfaction
1) Develop a Customer Satisfaction Index instrument for the offerings in your product category based on the attributes and ratings in the "Positioning" section.
a) An Appendix attachment of a customer satisfaction survey should be included in your final report.
2) Customer Value Proposition
a) Identify the "Next Best Alternative(s)"
i) Identify key competitive offerings
ii) Profile these offerings and explain how they solve the target market's problems/situations.
iii) Select the alternative(s) that best improve the situation for the target market and note the price of the alternative(s).
iv) State the competitor that is the targeted customers' next best alternative and explain why that competitor is your key rival.
b) Comparison to the Next Best Alternative(s)
i) Identification of points of parity
ii) Identification of points of advantage
iii) Identification of points of disadvantage relative to the next best alternative.
c) State the Customer Value Proposition:
i) Description of the experiences a targeted customer will realize after purchasing and using the product or service. It should be a defensible statement of the relative value of the product/service.
3) Customer Risk - see services section
a) Which of the seven perceived risks of using products and services are associated with your product?
b) What do you recommend to be done to mitigate each of these risks?
Product Strategy
1) Define the Brand Potential of the overall brand
a) Depending on your product, you may need to widen the scope to the brand in general rather than the product you have been working on to this point.
i) Brand Vision: Describe the brand's long-term potential and why this is a reasonable long-term view.
(1) Provide a rational/justifiable explanation of why this brand could realistically expand to compete in new areas through either market development, product development, or diversification.
ii) Brand Boundaries: What are the parameters that the brand needs to stay within?
(1) In this discussion, you should refer to the positioning of the brand. The boundaries of the brand should not extend beyond how far the positioning can realistically be pushed.
2) Identify three brand extension opportunities
a) For each brand extension opportunity:
i) State if it is a line or category extension
ii) State the role of each brand in the brand portfolio
(1) (Flanker, cash cow, entry level, prestige, increase shelf space, attract variety seekers, and/or achieve economies of scale)
iii) State, the growth strategy
(1) (Market penetration, product development, market development, diversification)
iv) Explain cannibalization concerns
Branding and Promotions
1) Create a Slogan for the product
a) Explain why it makes sense for this product.
b) Explain why it will connect with the target market.
2) The Creative Brief
a) State the objective of the brand building initiative
b) State the target audience
c) Explain the message theme - this should include how you will highlight key points of differentiation/advantage of your product
d) State the facts that will be used in the marketing communications to support the message theme
e) State any constraints that may exist
3) Six-Frame Storyboard for Marketing Communications
a) Create a storyboard for the creative brief that represents a customer-oriented marketing communications execution. The storyboard can be drawn if you would like but, it can also be a written "frame-by-frame" description. If it is drawn there should also be some narrative explaining each of the six frames.
b) It should also be specifically noted the execution and appeal type you are proposing.
c) Following the storyboard, you should explain what elements of the storyboard are responsible for each of the following:
i) Stopping Power
ii) Transmission Power
iii) Persuasive Power
iv) Locking Power
4) Building the Brand with Customer Engagement
a) How will you solicit customer created content
i) Describe what you recommend to encourage customer created content
(1) For instance, if you propose using social media you should state which social media platform(s) you will use and the "hook" that you will have in place to get customers to actually want to provide your organization with their own customer created content.
Pricing
1) State the value of the commodity attributes of your product.
a) Specifically explain how you arrived at that dollar amount. This should include multiple references to competing and/or lower-end products in the same category.
2) State the reference value for your product. The reference value should be based on the competitor(s) that you identified as the next best alternative(s). Provide any additional explanation that is needed to clarify how you arrived at that reference price.
3) State the differentiation value (Positive and Negative) that you assign to your product.
a) This should include the applicable components of monetary value and psychological value.
i) Additionally, the dollar amount that you assign to each component as the differentiation value of your product should be explained in sufficient, defensible detail. For example, if you believe that the psychological value associated with the convenience that your product offers is worth $20, it should be clear and defensible as to how you arrived at $20.
b) Create a Value Quantification table that includes the following elements
i) Value Drivers
(1) Each element/component of the product that creates value for the customer is a value driver.
ii) Features
(1) These are the features associated with each of the value drivers
iii) Benefits
(1) These are the benefits that the customer realizes as a result of the features that are associated with each of the value drivers.
4) State the price that you are proposing for the product along with a short recap of the key analysis.
a) State the total price and its component parts (Reference value + positive differentiation value - negative differentiation value).
Customer Loyalty
1) Creating Positive Word of Mouth
a) What actions do you recommend for the organization to do to create positive word of mouth for your product? Utilize the Tipping Point concepts of the Law of the Few, Stickiness Factor, and the Power of Context.
2) What actions do you recommend for the organization to take to enhance the perception of customer value?
3) Create a loyalty program that includes at least one purchase motivation (hedonistic, risk reduction, relational, and functional) in addition to economic motivation. (See Note 2)
a) Explain why your proposed loyalty program should resonate with the target market.