Tuesday, December 21, 2010

How to get a new product out marketing dilemma?

The "QS card" lighting scene lighting controller marketing programme

Case background: industry giants new embarrassment

QS appliances was born in 1920, is the world's top 10 brand of electrical appliance parts. In 1998, QS electric developed affordable, suitable for the Asian market small lighting scene lighting controller (hereinafter referred to as scene controller), this kind of electrical appliances in Europe and the United States has been very popular.

The "QS card" scene controller can create changes in the wealth of lighting effects, greatly improving family and small-scale public lighting and environmental quality. This product is a new highlight on the market, products, market similar products is very small. The development of China's real estate market, in particular, the dramatically significant luxury residential building, so that product market potential is huge.

However, the "QS card" scene controller from time-to-market, sales have been poor. From July 2000 on the market, in a one-year trial period, the product's retail price from the initial $ 3200-$ 980. But in 2000, one year, the product in the country only sold 400, the average sales price is only about $ 650, far less than the company expected target until the end of 2001, the sales performance is still not satisfactory.

Multiple factors contribute to product marketing dilemma

QS electrical strength out of the ordinary, "QS card" scene controller market potential is promising, but why is the actual sales are not satisfactory?

First, the lack of consumer market cultivation

1, although the switch socket by real estate developers new delivery using "rough House", belonging to the product must be installed, but the dimmer products belong to the enjoyment of the purchased product, in the "rough House" in basic will not install this product, the market share is small.  At present, the dimmer switch socket market accounted for about 10% of the market.  2, the average consumer has reversed light concepts, but without the initial contact with an in-depth understanding of the concept of dimming the true significance and its benefits, coupled with the expensive, so few active purchase. 3. Although there are many on the market of dimmer products emerge, but few manufacturers to market cultivation work, due to insufficient market cultivation, dimmer market climate still immature.

Second, the organizational structure is not conducive to new sales

QS electric company is taking vertical product management organization structure, the company has the Marketing Department (switch Sockets and low-voltage distribution), electronic control Department (distribution box and soft-start), lamps (industrial and commercial lighting), electronics (intelligent lighting control system) and communication (network cabling products) five products sector. Sales Department to the marketing department management, mainly responsible for sales, marketing and sales department, Department of electrical and lighting products, is responsible for sales of products total four series, model 5000 more. This organization creates and sales staff to sell the new product, a series of questions:

1. Sales Department is responsible for the product line is too wide, sales energy limited.  2, sales personnel tend to better sell products more energy to sell, not selling products less.  3, marketing and Sales Department for the brand product sales tasks, nor a clear set of sales incentives policy. 4, sales original by switch and socket, lack of understanding on electric products, quality is relatively low. In the past in the face of many is a professional customer, sales people often use relationship marketing. But now the customer is consumer, the sales staff have to understand the product knowledge and patiently explains.

Third, marketing work is not in place

1. preliminary market research, there is no specific market cultivation strategies.  2, pricing strategy, there is no long-term consideration various channels of distribution of benefits between layers, besides products pricing changes frequently, the impact of dealers on the product.  3. still old sales channels, inadequate to support the "QS card" scene controller in a new retail market development needs. 4, product, communication and promotion strategies are not perfect, can not be reached so that the majority of consumer awareness of the brand product.

IV. the special nature of the product itself

QS 1, "licence" scene controller than standard square switch covers an area of large, General room it is difficult to find a suitable installation location.  2, different from the normal switch, the products need to add a zero line, this will undermine domestic original decoration. 3, product prices, the average consumer does not bother.

SPT strategy established marketing basis points

In order to establish and develop new marketing strategies, we need strategies based on SPT * on "QS card" scene controller product and market analysis.

First, on market segmentation

To use the product to potential clients, clients can be divided into two broad categories: Organization, market and consumer markets.

Organizers of the market including conference rooms, museums, galleries, hotels and real estate developers in bulk purchase, etc. Design Institute in which acts as the initiator and the role of the organizers of the Procurement Department then played a decision makers and buyers.

Consumer market mainly residential decoration. Due to the lighting and scene concept and not for general consumer understanding, and purchase of the entire product chain, decoration companies play a consumer purchasing decisions on the important role that lighting companies have participated in the market.

Second, the target market decision

In the segment of the market, the company on various market segments are evaluated to determine the scope and priority of entry, also is to find the enterprise of the future "arena". For the "QS card" scene controller, the customers are divided into commercial and home users, to estimate the market potential for development, commercial customers and home users of about 2: 8. Based on the market potential and business customer's purchase decision cycle (6-18 months) longer and other reasons, the "QS card" scene controller sales focus on the family

Households.

In the select a target market, because it is a new product into the market's first year, marketing resources, can only choose the National City of most the opportunity to enter the market, the company ultimately selected for Beijing, Shanghai, Guangzhou and Shenzhen in upscale, purchase three bedroom and willing to spend more than 6 million renovation home owners to focus on the target client. The company's ultimate target market is extended to the major cities of new commercial property owners.

III. market positioning strategies

1. professional functions benefit

From the entire market, the market does not have a similar and high cost performance products. The birth of the brand product filled up the blank of this market. Their intelligent, user-friendly, and other advantages to exactly meet the consumers on the constant pursuit of quality of life.  Therefore, should strengthen the brand's professionalism, multifunctional. 2, upscale location

The product's unique features and characteristics suitable for high-grade decoration, decoration, its upscale location also coincides with the QS appliances the upscale brand image. Therefore, companies should be create on products in the market for high-end brand image.

Four means open new markets

From the above analysis, the "QS card" scene lighting controller this product marketing goals has a clear understanding. Since this product is a new invention, is now in the market and the import period should take the matching of marketing strategy.

1. the company should let potential customers know about new product features, uses and advantages.

2, companies need to spend a lot of money, to develop products, promotions, and construction channel (at this time, most companies will not have a profit).

Based on this, we develop appropriate marketing strategies:

First, to provide better, more convenient product line

Design and produce a can effectively meet the needs of the market and competitive products, become the key to marketing activities. In order to improve product functionality, should in the first generation "QS card" scene lighting controller family of products made on the basis of adjustments to improve the users ' convenience and convenient electrical officers better install the product. Including the development of a range of new products to complement the product range of integrity, such as connecting a variety of security systems and intelligent home control system interface unit to provide linked features; on the external packaging printed "QS card" product is in compliance with international and domestic Electrotechnics industry standards; provide a bilingual user manuals and product installation manual; offers two years free warranty, etc.

Second, take market skimming fat pricing

New product launch sales price when there is a need to develop a mainly market skimming fat pricing and market penetration pricing.

The "QS card" is a new product, the market leader. At the same time, since its initial development cost is huge, with upward light collector products in the home and small conference rooms and other places is not popular, companies need to do a lot of market cultivation. Companies need to adopt market skimming fat pricing to provide adequate profit space given to the company the Marketing Department and dealer for push and pull marketing strategy, developing market. Therefore, the introduction of the new product price system. Due to the price adjustment ranges, dealers should be informed in advance, so that it remains adequate inventory, at the same time, the dealer announces the increase investment "QS card" product's marketing and promotional programmes, strengthen confidence in the product dealers to ensure resellers support availability.

Third, build your own distribution channels

As the dimming and control concepts are not consumer awareness, companies need universal access to a large number of market, in order to successfully open the situation. In Beijing, Shanghai, Guangzhou and Shenzhen four target market the recruitment one "QS card" Sales Manager, responsible for the market of "QS card" scene lighting controller sales, training and supervision in the area of sales, dealer sales staff and guide, and promote product sales; at the same time develop and manage various types of channels, channel coordination between conflicts of interest.

While the existing channel structure is not completely suitable for product marketing, past sales results show that organizations purchase accounted for about 85% of sales, only 5% of sales from retail distribution channels to consumers, and now has defined major market segments in consumer markets, companies need to put in force in the consumer market; General retailers not used to sell products to consumers, especially as this technology is relatively high, the function of more advanced products, you need to attach certain personnel sales and product demos, in order to facilitate your purchase. Therefore, you should adjust the channel strategy:

For organizations to purchase consumer group: retain a certain original sales people and dealers; in Beijing, Shanghai, Guangzhou and Shenzhen City select five system integrators (sales security system and intelligent home system) channel, for bundled products.

For consumers to purchase group: in Beijing, Shanghai, Guangzhou and Shenzhen City adds two regular contact with consumer channels, select 20 lighting retailers and 30 family decoration design company as retail distribution channels.

Fourth, strengthen communication with consumers

Promotional communication strategy should take to promote policy and pull strategy: promoting strategy to recruit experienced and quality higher sales, and enhance existing sales training and sales skills training. For companies inside sales for sales incentives policy.

Organising dealer orders, offer a range of attractive conditions led to the dealer, and strengthen yahuo class marketing support, dealer to promote the "QS card" product. Pull marketing strategy is an important strategy. For the "QS card" scene lighting controller, foster market is essential, there is a need for more investment in marketing, in place of the budget, the recommendations are not for profit-budget, try to put more resources to organise several influential activities.

The "QS card" scene lighting control

For the first year listed on the back, you need a large number of market inputs to fully improve product visibility and cultivating the market need for marketing, sales and marketing costs will far exceed the QS electric company general product of 20% to 25% the proportion of marketing costs, while at the same time, it does not make a profit, to cultivate the market and the long-term development of the product.

Note: STP marketing strategy including market segmentation, target market decisions, market position of part III. Market segmentation (segmenting) is based on different characteristics of the purchaser or the diversity of market demand, on the overall market for in-depth analysis and classification for marketing activities to provide choices and more space. Target market (targeting) of the decision, asked the enterprise according to definite criteria and methods to evaluate the various market segments, and determine the scope of their access to and the key is to find the enterprise of the future "arena". Market positioning (positioning), is the enterprise for themselves and their products on the market to establish certain characteristics, shaping the image of the book. This process is commonly referred to as target marketing, also known as STP marketing.

No comments:

Post a Comment