3. The knowledge and information possessed by the entrepreneur, including knowledge of the new concept, the industry, and market research. Moreover they shall consider barriers to entry, location, competitors, social and economic trends, regulatory factors, target market, and market penetration and more importantly how information would be obtained? 4. The ideas ability to generate revenue. How great is the potential to sell something that will generate actual revenues? There are a lot of tools that can be used to evaluate the initial idea and subsequent opportunities. ¢ Creative tools such as ALUO (Advantages, Limitations, Uniqueness, and Opportunity) can help entrepreneurs identify the key strategic points and differences surrounding their ideas for the business. ¢ The KIC (Knowledge of Industry Checklist), including a comprehensive competitor analysis, is a useful guide for collecting and interpreting information about the industry. ¢ Give Me Five is a creative tool that is helpful to understanding the experience that the product or service should provide to customers. It asks you to take the perspective of significant constituents to your business.
After all the Opportunity Organizational Proposal (OOPs), which is a comprehensive analysis technique to test the feasibility of the venture idea, aid entrepreneurs on appraising the ability of the business idea to effectively solve the problem or fill the need for which it was intended, as well as the degree to which the idea can generate sufficient revenues to warrant the resources needed to bring the opportunity into action.
Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target? Martha identified the target market for trap-ease being women. She feels that women are the best group to target because they dont like the mess or the risks created by traditional mouse traps. Unfortunately Women is a vastly large population to be considered a sector and be identified as a target market. This sector she defined is non-homogeneous that cannot be addressed through the same channels or by a common message. I believe Martha is imagining this product more for housewife use, when in reality many women are now in the job world. So instead, Martha should categorize her market by single women, working women, housewives, mothers etc. Moreover other potential customers could be addressed through different routes and benefits, creating a package of different target markets with different marketing mix.
They can expand their market to animal lovers, because it doesnt put the mice at harm and they can be released. Also families with kids would also like to have Trap-Ease, traditional mouse trap and poison pose a very large risk to infant and kids. Parent would be happy to have this innovative safe mouse trap to be around compared to the dangerous traditional substitute. Also environmentalist, pets owner, factories, sewage, farms still holds a great potential for Trap-Ease. Trap-Ease are reusable and durable, therefore it create less effect on the environment. This advantage would attract environmentalist that would care more for the earth. The environmentalist market are growing rapidly as more and more people are getting aware of the problem faced by the earth such as global warming and deforestation. Trap-Ease also would be attractive for pets owner as it doesnt required poison and dangerous spring mechanism. The traditional mouse trap would pose a threat for the pets as pets might mistake the poison for the food while the spring loaded mechanism might accidentally snap on a paw or tongue of pets. The rats are also commonly found in factories, Martha should send some salesman to this market to introduce them Trap-Ease which would not create any mess and reusable. Factory would find it attractive as traditional mouse trap will create mess that would possibly contaminate the food that factories are producing.
How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways? Trap-Ease was positioned primarily as a humane alternative to spring traps. Furthermore, with Trap-Ease, customers can avoid the unpleasant mess the encounter with the violent spring-loaded traps-there are no clean-up problems. Concise it is positioned as a humane, mess free mousetrap. I believe Trap-Ease should be positioned differently for various target markets. The major alternative is to position Trap-Ease focusing on its ability to control diseases, because the mouse is trapped in a fully enclosed device. There is a little opportunity for disease to spread as a result of its capture. It must be noted that positioning the product that way would make a huge difference in market strategy. For all target markets and different positioning schemes benefits should be promoted rather than features. In case of selling the idea of controlled disease spread it should be addressed to interested target markets as keep your children safe, and for factories as keep your products up to the highest standards.
Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix? Product: An innovative award winner mouse trap that avoids the mess and hazards of traditional spring trap, providing a clean humane experience. Price: 1.49 $ for one trap, when sold in pack of two it is not discounted. Price is five times more expensive than traditional traps. I believe the higher price than traditional traps is well justified by the exceptional added value of decreasing disease. Honestly at the beginning I wanted to decrease the price by a small margin but after I saw that people appeared to accept the price after a small time I realized that decreasing price would decrease profits rather than increase sales. I believe the reason behind low price elasticity is being a cheap product that is not bought on regular basis so it doesnt constitute a large portion of income (makes no difference).
On the other hand there shall be a complete different price offered for factories, farms, etc. were they would be able to buy packages of 50+ traps for a much lower price because here price makes a huge difference for the buyer. Rough calculation of break-even point would yield 234000 unit, assuming average 1.29$ revenue per unit after sales and volume discounts, and variable cost of 39.2 cents, as 8.2 cents for royalty fees, and 31 variable costs, while setting fixed costs as 210000$ collectively broken down to 150000$ administrative cost and 60000$ for promotion. Place: Martha House has made the decision to distribute the product directly to national chains. While if they choose to use wholesalers they will increase their reach which is something so important where product loyalty in this field is not high, therefore heavy presence would affect volume of sale drastically. Moreover the company makes an acceptable profit margin that would not be affected by wholesalers margin.
Furthermore adopting direct distribution creates problems for the company due to its small size; the company does not have its own truck and distribution facilities. It must depend on sourcing when it comes to logistics. Because national chains have very strict time schedule, which makes it difficult for trap ease to control its distribution. Promotion: budget of 10000$ assigned for advertisement related to 50000$ for attending trade shows establish the idea mentioned before that Martha was much more product oriented. Trap-Ease mix is relaying basically on appearances in trade shows and some limited advertisement which I believe should be completely reversed. On the other hand the firm depends on point of purchase displays to sell its products. One might wonder however how quickly consumers passing point of purchase displays for the product will understand what Trap-Ease offer extra over the other traps.
Who is Trap-Ease direct competition? Who are indirect competitions? Because house mice are so small, they can gain entry into homes and other buildings much more easily than rats. As a result, house mouse infestations are probably 10 to 20 times more common than rat infestations. Effective control involves Direct competition is embodied in
Trapping is an effective method for controlling small numbers of house mice. Although time consuming, its the preferred method in homes, garages, and other structures where only a few mice are present. Trapping has several advantages as it doesnt rely on potentially hazardous rodenticides, it permits the user to view his or her success, and it allows for disposing of trapped mice, thereby eliminating dead mouse odours that may result when poisoning is done within buildings. * Mechanical traps
* Electrocution traps
* Glue Boards
Indirect competition is represented in
Baits to control rodents are formulated with an attractant (generally food) and a rodenticide (toxin). Changes in rodenticide regulations went into effect in mid-2011 in an effort to prevent rodenticide hazards to wildlife and pets and reduce accidental exposure to children. These federal EPA restrictions now permit manufacturers to produce, for sale to the general public, only rat and mouse baits that are packaged in ready-to-use, disposable bait stations. Agricultural producers and professional pest control personnel are able to obtain more types of rodenticides in various formulations, some of which are restricted use pesticides. * Anticoagulant Rodenticides
* Other Rodenticides
* Rodent Repeller Devices
* Proven to be not effective but still on sale
* Not effective but may work to avoid second attacks after eradication.
How would you change Trap-Eases marketing strategy? What kinds of control procedures would you establish for this strategy? Martha is product oriented to a far extent; she didnt do her homework when it comes to market research because she was in a state of myopia with Trap-Ease. Martha though that the value proposition of the product will bring along the customers without much promotion. Trade shows were that primary and the main communication channel, with too little advertisement. When it comes to target market, as discussed above I believe that Martha has chosen a vague wide sector that is hard to be addressed as a whole (Women). Regarding distribution chain, Martha House has made the decision to distribute the product directly to national chains. Swot Analysis
1. Innovative product
3. Provide improved Hygiene
4. Ease to use product than other.
1. Very diversified market which gives a lot of options and secure the product. 2. Attractive unique product.
3. Low price elasticity market as price is generally low Weakness
1. Weak Supply Chain
2. Lack of adequate promotion.
3. Not proper segmentation.
4. Product oriented strategies. Threats
1. New mouse trap design
3. General decline in population of mice
To develop the right marketing strategy a careful scanning of the internal and external environments is a must. Internal environmental factors include the marketing mix and marketing mix modelling, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. Although there is a deficiency in data and so in information, we can highlight some suggestions that Martha House shall consider to improve Trap-Ease marketing Strategy. First of all I believe the winner ace would be in positioning Trap-Ease in a better set of the mind to justify for a high price, add value, and increase demand. Eradicating Mice with the least risk of disease spread would be a very valuable added value for nearly all customers, dont forget plague (rats) that caused the death of one third mankind.
Still I strongly recommend different messaging and positioning for various target markets, for example the message to pet owners would be trap mice without harming your beloved pets, harming pets can be either mechanically by traditional traps or because of poison in baits, that may be mistaken for pet food. In another case for environmentalists, the message could be a recycled, reusable, merciful, decisive way to eliminate mice. Emphasis on what was mentioned ahead in respect to targeting Martha has chosen a vague wide sector that is hard to be addressed as a whole (Women). Instead, Martha should categorize her market by single women, working women, housewives, mothers etc. Moreover other potential customers could be addressed through different routes and benefits, creating a package of different target markets, like animal lovers, families with kids, also environmentalist, pets owner, factories, all hold a great potential for being a target market for Trap-Ease. Martha must use wholesalers because they will increase their reach which is something so important where product loyalty in this field is not high, therefore heavy presence would affect volume of sale drastically.
Moreover the company makes an acceptable profit margin that would not be affected by wholesalers margin. Furthermore adopting direct distribution creates problems for the company due to its small size; the company does not have its own truck and distribution facilities. It must depend on sourcing when it comes to logistics. Because national chains have very strict time schedule, which makes it difficult for trap ease to control its distribution. A customer hotline that assist customers to get rid of mice would be a great addition, not only aiding people on how to use Trap-Ease or where you can get it, but how to get rid of mice in general. ( we are here to help you get rid of mice not to sell Trap-Ease). To maximize the return on a marketing plan, there need to be controls in place to monitor the plans progress. As a marketing plan moves along, the controls are constantly analysed to determine how the plans actual performance compares to the projections. Any changes that need to be made are done based on the analysis of marketing controls. Understanding what the controls in a marketing plan are will help you develop effective performance measurement indicators. Control can be constantly done though
Through focus groups and Trap-Ease hotline
Target Market Sales
Can be measured through market surveys or at the point of sale with the assistance of retail partners. Actual sales in the target market are compared to the marketing plan projections to see if any changes need to be made. If sales are down, then further market research needs to be done to see why the target audience is not responding to the marketing. In some cases, analyzing a demographic breakdown of sales may indicate that the initial target market was inaccurate and a new target market may emerge based on sales data. Market Share
Measure how much Trap-Ease sell compared to direct competitors, mainly Traps. The marketing plan should outline the market share of the product before the plan is in place, and then projects the changes to the marketplace when the plan is over. During the plans timeline, there will be milestone percentages the should be reached through the way to the X percent increase. For example, you may want to see a X/2 percent market share increase at the halfway point of the marketing plan. If your analysis does not show a X/2 percent increase by that point, then we need to analyse why the plan is falling short and what can be done to correct it. Budgeting
As we want to increase expenditure on promotion especially on advertisement we shall do budgeting, which is a balance between the cost of generating the advertising materials and the revenue created by the marketing plan. There are several controls in place that can be used to monitor a marketing budget, including print advertising expenses, travel expenses for trade shows. All of these costs need to be closely monitored to minimize spending and maximize profitability (maximize efficiency). By examining expenses, you are able maintain your budget and see exactly where spending increases come from.