Kay Success Factors (KSFs) - Article Example

OF NEW BRUNSWICK BA2303: PRINCEBLES OF MARKETING “MARKETING PLAN PART WASH-IT Terry Conord Submitted by Suliman Alsalhi - 3398810Lee yeon jin - 3455783Ali Kant - 3259058Turki Almogarry - 3305852 Hattan Subhi - 3303239Moneer Malebari – 3325679Table of ContentsExecutive Summary 3Product’s Description 3What need is being satisfied? 4According to environment Canada, Canadian use 343 liters per day on a domestic usage which is ranked the second highest after the United States (environment Canada, 2011).

This product will help house holders to reduce their water usage and water bills. It also can save electricity bill because the machine consume less possible energy operating both shower cabin and washing machine. Furthermore; Wash-it also uses less space, since it operates two machines at once. So house holders do not have to buy a washing machine. 4Target Market 4Market and growth rate: 5Characteristics of customer buying decision: 6Influences on Purchasing Decision 7Value proposition 7Characteristics of the industry 8The Competitors 8There are many environmental forces that need to be looked at to further improve the marketing strategy for Wash-it.

In terms of social force, Canada is seeing a demographic shift toward living in bigger cities according to the Statistics Canada Census Metropolitan Areas (CMA), 2011 and 2006 censuses (1). This will give Wash-it a better understanding at targeting and segmentation of both the market the consumer base. Canadians are also shifting towards a “Green Culture” which allows more use of renewable energy and saving resources such as water, these changes align with the Wash-it product ideas and aims.

10Another force that affects the Wash-it product is the Economic forces. According to The Current State of Canadian Family Finances of Vanier Institute (2) the Canadian economy is in a recovery stage and seeing an increase in gross income as well as an increase of disposable income for households. Using the previous information, Wash-it can reflect its pricing range based on these numbers. 10The third force that effect Wash-it is the Technological forces. Wash-it is based on a mix of existing technologies.

These technologies need to be improved and upgraded in Washit to stay up to date with the fast paced industry of technology. It’s also worth mentioning that more and more people are getting online, this also adds to the effects on the consumer’s base. 10Other Factors 11In order for the product line to be successful it must engage certain Key Success Factors (KSFs) in order to be able to adequately penetrate the market and have the potential ability to turn a profit for the firm. The first of these is the level to which the supply and delivery mechanisms of the given product can help to place the firm at a competitive advantage as compared to its competitors.

Without a well planned and highly efficient supply mechanism, the firm’s offering is dead before it can even hope to gain market share. 11A secondary logistical KSF is the fact that suppliers of the device will need to be lined up and defined prior to the first shipments being made. In this way, it is necessary to ensure that a strong supply chain is linked to a strong distribution network in order to ensure that the good will have adequate visibility to the customers in the key markets in which it will be competing.

11A final KSF that must be considered is that of how the project itself will be funded throughout the preliminary and secondary stages. As is fully evidenced by any firm that is attempting to break into a market, a large amount of cash is necessitated as the entry process is one of the most expensive periods that a business will need to endure. As such, having access to highly fluid capital or financing from a given entity or banking institution will define the success of the project to a great extent as it attempts to navigate the difficult externalities of the given market within the primary stages of project start up and development.

11Executive Summary The following paper includes the description of the targeted market and customer profile which will be targeted for launching a new product that combine showering and laundry machine in one cabin for household’s usage. The following paper includes the evaluation of market and costumer segmentation. Product’s DescriptionBasically combining a shower cabinet and small washing machine is the main concept of Wash it. By using three water filters this project aims to save more water by utilizing the same water that you use for taking a shower to wash your clothes at the same time and the consumed water that you used in the shower and laundry will go to the toilet to be reused for flushing.

Save more money on your water bill, this product will definitely change your daily routines, no more washing clothes in bulk. Every time you take a shower, it means you have the chance to wash a few pieces of clothes without having to spend extra water.Gray water that comes from showers outlet goes to filters with the help of the first water pump. After filters clean water goes to water tank. When users start to use washit, the second water pump start to drain water from water tank to both shower head and washing machine, and the used water at last goes to the toilet to be reused for flushing.

So the cycle is completed What need is being satisfied?According to environment Canada, Canadian use 343 liters per day on a domestic usage which is ranked the second highest after the United States (environment Canada, 2011). This product will help house holders to reduce their water usage and water bills. It also can save electricity bill because the machine consume less possible energy operating both shower cabin and washing machine. Furthermore; Wash-it also uses less space, since it operates two machines at once.

So house holders do not have to buy a washing machine.Target Market The target market has been identified by analyzing the need of the house holder to save more money, water, energy and being a green consumer. In order to target the costumer group, the producer needs to evaluate the target market. In this case, the target market for Wash-it is Canadian householders who consume more water and energy than the other pioneer countries (other than the United State) since its uses more water per capita according to environment Canada website.

Given the previous facts it appears that Canadian house holders are in dire need to save water and energy consumption since it will reduce pollution, health risk and reduce the cost of energy and water and extend the useful life of existing supply and waste treatment facilities.(Environment Canada website). Wash-it is intended to be used in crowded cities because usually there will be more energy usage and water waste due to the amount of the population, as well as targeting a smaller cities by implying the money saving concept of the product.

Market and growth rate: As a result of having benefits from Wash-it, market rate will be high as possible because Canadian households will demand more the product for saving more on their bills . When more people willing to buy the Wash-it, growth rate of the product will increase depending on market rate. As mentioned previous paragraphs, target will be Canadian households and market rate can be increased by using different marketing techniques such as social media, electronic advertisement and so on.

For producers, increasing market and growth rate of Wash-it can be done by using online advertisement. According to Perspectives on Canadian Broadcasting, Canadian advertisement expenditures on internet have made much increasing than other advertisement techniques (Canadian market association, 2011).Characteristics of customer buying decision:When deciding whether or not to buy our product, customers will go through different steps. Customers can find information about our product through advertisements on the TV, in magazines, newspapers, trade shows and online.

When they find information about our product, they may come to the retail store and examine the product closely before they make their decision. There are many alternatives that customers can choose from. One of these alternatives is buying a separate washing machine and shower cabinet since there are no companies currently selling a product like Washit. However, customers are going to buy Washit instead of the usual washing appliances because of the features that we provide which is lacking in our competitors’ offerings and also it helps water conservation.

Influences on Purchasing DecisionWhile making the purchase decision, consumers will have to deal with several influences. These influences can be described as psychological, situational and socio-cultural. The first influence is psychological factors. People have beliefs and values that will influence them into making a decision. For example, people will buy Washit since it provides all the convenience of a shower cabinet and washing machine and also saves water consumption thereby reducing their expenses.

The second influence is situational factors. People vary in economic status, and individuals’ ability to buy Washit is obviously going to vary. This can be managed by stressing the reduction of water bill in the long run for a one time investment in Washit. The third influence is socio-cultural. The trendy design of Washit and its combined shower and washing features will certainly influence the customers. In these days of sustainable living, the customers will also buy Washit to show the society that they walk the talk.

Value propositionWash-it is a combined shower and washing machine. It is design to make those 15 minutes shower worthy. Saving money, time, and energy are our goals in order to meet householder’s need. Wash-it is completely new product in the market. It is a unique product with no competitors. There are companies that made showers and washing machine separately, but not mixed together.Characteristics of the industryWashit will be marketed under the appliances manufacturing industry. The appliance manufacturing industry is further subdivided into household dryers and washing machine manufacturing.

The subsectors of this industry are the manufacturers, wholesalers, offshore producers and retailers.The washing machine industry is a highly competitive one in Canada with domestic and international manufacturers targeting the market. In addition the household washing and dryer market is saturated as first hand buying of these appliances is very minimal and customers mostly prefer replacement appliances. These machines are also manufactured for long lasting performance. The North American Industrial Classification (NAIC) has classified appliance manufacturing under NAICS 335229 and the retail stores that sell these machines under NAIC 443111.

Our company will be occupying the high end product category in this industry due to its innovative and sustainable features. The technology used in Washit offers unique benefits to the customers. Thus it will have a placement in the high end price category that offers better value, durability, style, performance and above all water conservation and reduction of water bills.The Competitors When analyzing the of this product and explain the external and internal situation by using SWOT analysis.

OpportunitiesOpportunity factor of this product is that we can be a pioneer of this market; Creative idea can make more profits. Moreover, since this technology is hard to be imitated, other washing machine companies or showering cabinets (tubs) companies cannot produce easily. ThreatsFor the threat factors, consumers don’t know what it is because it is unique and might be hard to use to some costumers. Consumers may mind buying this new product because of the accessibility and high technology.

So we have to concentrate on marketing strategy.StrengthStrength of this product is that this product is totally new product in the world. Of course, there are laundry machine companies and shower cabinets (tubs) companies, but there is no machine that combines these two products. WeaknessesWeakness is the price of Wash-it because we expect this would be higher than other tubs and washing machine, but less expensive than buying washing machine and a tub. Since it’s a high technology product, some costumers might think that it is too much to have.

Environmental AnalysisThere are many environmental forces that need to be looked at to further improve the marketing strategy for Wash-it. In terms of social force, Canada is seeing a demographic shift toward living in bigger cities according to the Statistics Canada Census Metropolitan Areas (CMA), 2011 and 2006 censuses (1). This will give Wash-it a better understanding at targeting and segmentation of both the market the consumer base. Canadians are also shifting towards a “Green Culture” which allows more use of renewable energy and saving resources such as water, these changes align with the Wash-it product ideas and aims.

Another force that affects the Wash-it product is the Economic forces. According to The Current State of Canadian Family Finances of Vanier Institute (2) the Canadian economy is in a recovery stage and seeing an increase in gross income as well as an increase of disposable income for households. Using the previous information, Wash-it can reflect its pricing range based on these numbers.The third force that effect Wash-it is the Technological forces. Wash-it is based on a mix of existing technologies.

These technologies need to be improved and upgraded in Washit to stay up to date with the fast paced industry of technology. It’s also worth mentioning that more and more people are getting online, this also adds to the effects on the consumer’s base.Other FactorsIn order for the product line to be successful it must engage certain Key Success Factors (KSFs) in order to be able to adequately penetrate the market and have the potential ability to turn a profit for the firm. The first of these is the level to which the supply and delivery mechanisms of the given product can help to place the firm at a competitive advantage as compared to its competitors.

Without a well planned and highly efficient supply mechanism, the firm’s offering is dead before it can even hope to gain market share. A secondary logistical KSF is the fact that suppliers of the device will need to be lined up and defined prior to the first shipments being made. In this way, it is necessary to ensure that a strong supply chain is linked to a strong distribution network in order to ensure that the good will have adequate visibility to the customers in the key markets in which it will be competing.

A final KSF that must be considered is that of how the project itself will be funded throughout the preliminary and secondary stages. As is fully evidenced by any firm that is attempting to break into a market, a large amount of cash is necessitated as the entry process is one of the most expensive periods that a business will need to endure. As such, having access to highly fluid capital or financing from a given entity or banking institution will define the success of the project to a great extent as it attempts to navigate the difficult externalities of the given market within the primary stages of project start up and development.