1. 0 Introduction! yenTakara Aquaroid! | – an electronic pet, was introduced to the market by Takara Company Limited in 2000. It is special because it is! yen living! | in water. The design of the product is delicate with lots of high-tech components. Oriental Trading Co.
, (HK) Ltd. is the official dealer in Hong Kong. Due to different problems arose in marketing like insufficient promotion and poor distribution channel, the sales turnover of the product is disappointing. In order to improve the situation, we have analyzed the environment again and choose a specific group of target customers. According to their buying behavior, we have designed a new marketing plan for the product. 2.
0 Glamour of Electronic Pet Due to the technological development, you may have another form of pet in your homes, an electronic variety. The robotic pets appear to be very useful to people. They can act more than just as your companion or toy, entertainment. 3. 0 Takara Aquaroid Overview A Japanese company, Takara Company Limited, launched a brand new type of electronic pet! V aquarium livings in March, 2000. At that time, electronic pets were mainly cats and dogs, no one thought of aquarium electronic pet before.
The company spent 2 years in research and developed the products called! yenTakara Aquaroid! |, which included a jellyfish and a fish. The products are sold in package. The package includes a jellyfish and / or a fish, several spotlights, an aquarium, and some other tools to keep the water warm and clean. The jellyfish and the fish are operated by solar energy, which is supplied by the spotlights. In addition, the specially designed aquarium reflects water pressure, light condition, and water flow to the sensor installed on the jellyfish and the fish, which affects their movements in the water. With this aid, they will not crash into each other or even touch the side of the tank.
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3. 1 Dealership of Takara Aquaroid in Hong Kong The official dealer in Hong Kong is the company called the Oriental Trading Co. , (H. K. ) Ltd. It was originated in Shanghai and started Hong Kong operation in 1949.
After years of development and diversification, the company nowadays market and distribute a wide variety of products in four main categories namely toys, candy toys, health and beauty products, and infant products. After becoming the dealer of Takara Aquaroid, the company set the price to about HK$7, 000 depending on the package. The price was very high since it was imported directly from Japan. Customers could buy the product through a shop called JC Shop in Tsim Sha Tsui.
The product became well-known to the public because lots of mass media went to the shop to video or take photographs for the product. Besides, JC Shop maintained a web page for the products they sold and customers could find the information through the Internet. The sale of the product was not satisfied. According to our interview to JC Shop, the keeper claimed that only 20% of target sale was achieved. It was mainly due to improper marketing strategy.
The company was not targeting on certain customers. They thought that when people knew the product through the mass media, they would come and buy the product. In addition, customers could only buy the product in the shop in Tsim Sha Tsui but no other places. The distribution channel was not wide enough and not convenient to the customers. Promotion and pricing strategy was another problem to deal with. The company hasn! |t got any promotion plan for the product.
The product just occupied less than half of a page of the magazines and a picture or two were shown to tell the readers about the product. Readers could not get more detail information from the printing media. It occupied less than five minutes of a TV programme which meant audience could only have a look at the product. The price of the package was too high and a way to help customers pay should be introduced. 4.
The Term Paper on Johnson Toy Company
Introduction Efficiency and success of any organization is measured by the effect of its policies to successfully manage its operation. Lack of policies creates confusions among employees and impacts the effectiveness of the organization. As a result of its failing return policy, Johnson Toy Company is challenged with major revenue losses and is considering measures to correctly deal with the ...
0 Market Situation Analysis 4. 1 SWOT Analysis for Takara Aquaroid in Hong Kong To help building an effective marketing plan for Takara Aquaroid, we will use SWOT analysis as a strategic planning tool to compare internal organizational strengths and weaknesses to external opportunities and threats. We have to modulate the internal strengths and weaknesses which are controllable elements of marketing decisions (product, price, promotion and distribution) within the framework of the uncontrollable elements, i. e. , the external environment of the marketplace (competition, technology, culture, etc) in such a way that marketing objectives are achieved (Cateora P. , Graham J.
, 1999).
4. 1. 1 Strengths a. Technological Takara Company Limited runs toys business since 1953, it is now one of the Japan! |s leading manufacturers of toys and novelty goods.
It has superiority in design, production, marketing, research and development of toys because of its experience in this industry. b. Financial The company also has strong financial backup as it was listed on the first division of the Tokyo Stock Exchange in 1991. It helps the funding of research and development and thus, helps them to catch up with the fast moving pace of toy industry. c.
Geographical The company is based in Japan, a location that provides good environment with mature technological infrastructure. It brings a positive impact to the company for developing high-tech products as a whole. Although it based in Japan, it has eight subsidiaries located in Japan (six), US (one) and Hong Kong (one).
It helps the company to build up knowledge of consumer needs in different culture. The proximity to market facilitates Takara Aquaroid to development its market in those locations. 4.
1. 2 Weaknesses The product features of Takara Aquaroid are less competitive to other electronic toys. For the other electronics toys, such as, electronics dogs and cats equipped with AI (artificial intelligence) function which capable of high level of interaction between human beings and the toys. The jelly fish cannot be contacted directly because it is presented in an aquarium tower.
The product form of Takara Aquaroid reduces the opportunity of interaction between customers and the toy. This was compensated by adopting the appropriate market segmentation. The selection and implementation of appropriate market segmentation and positioning helps Takara Aquaroid to differentiate from the other forms of electronics toys. This will be discussed in the later section.
The Essay on Describe how marketing techniques are used to market products in two organisations
Describe how marketing techniques are used to market products in two organisations In this task I will describe how marketing techniques are used to market products in two different organisations in this case NHS and Nike. NHS The NHS was found by Aneurin Bevan on the 5th of July 1948 when he opened the Park hospital in Manchester; his ambition was to break a high standard of healthcare to ...
4. 1. 3 Opportunities The unique environment in Hong Kong offers plenty of opportunities in the market place. The laissez-faire mechanism in Hong Kong created a favorable environment (least government control, low tax rate and absence of trade protection) for various businesses to be developed. The well developed media coverage in Hong Kong boost the effectiveness of advertising and promotional activities, word-of-mouth effect is extremely powerful so that the company can make good use of it when deciding it! |s marketing mix.
Besides, the prevalence of Japanese style and appreciation towards! SS Made in Japan!” products in Hong Kong foster the market for Takara Aquaroid. The living environment in Hong Kong also provides a favorable situation for marketing electronics pets. As Hong Kong is so small and most of the residents are just living in a small flat, which is not allow for caring pets, they even have no time to take care of an real animal. Takara Aquaroid can fill the gap for those pets lover who have time and space constraints to have real pets. 4. 1.
4 Threats The on-going economics down turn affect the overall consumption desire of Hong Kong people. As electronics toys are a kind of leisure goods, most people will cut their spending in this area first. Therefore, a careful consideration in the pricing strategy will be crucial in this critical moment and more efforts should be put in various marketing functions to stimulate the consumption desire for Takara Aquaroid. Another threat that the company will face in Hong Kong is the lack of government control towards copyright. The counterfeit will be ruinous to the profit of the company and Inferior counterfeits may bring negative effect to the overall image of the product. Besides, one of the market characteristics of this kind of electronics creatures is the high successful rate for the market pioneer.
Among those advantages for the first mover like economies of scale, experience effects, technological effects, etc, the effect of reputation is the most obvious one. We can conclude that the company should define a right time-to-market cycle to maintain itself in the competitive edge. Although the electronics toys is a kind of high-tech leisure product, the complexity of using the product is not really high and the resources needed for educating customers about the new technology is relatively low, it is easy for the customers to switch their purchase. As a result, fast reaction to the market will be crucial.
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4. 2 Competition on Electronic Pet Industry – Takara Aquaroid In analyzing the competition on Takara Aquaroid as a whole, we have to understand the concept of Michael Porter! |s! SS five forces!” model (1985), which is a well-known approach for corporate strategy analysis. In Porter! |s view, an organization! |s ability to compete in a given market is determined by that organization! |s technical and economic resources, as well as by five environmental! SS forces!” (Fig. 1), each of which threatens the organization! |s venture into a new market.
The strategic manager must analyze these forces and propose a program for influencing or defending against them. The aim is to find a lucrative and defensible niche for the organization. The five forces are: 4. 2. 1 Threats of New Entrants Firstly, we can forecast that Takara Aquaroid will face intense threat of new entrants. No one really knows when the sophistication of the electronics in cyber pets could match or exceed the mental capabilities of your organic pets in every way (Pearson, I.
, 2000).
Developers nowadays are more capable of building a simpler interface, more user-friendly cyber pets with the use of information technology. Speech recognition and synthesis and radio technology mean that most electronic equipment could be completely hidden from sight under the stairs or in the attic. Robotic pets can be anticipated as more than just entertainment value, they can offer companionship and a variety of other services to the people. 4. 2.
2 Threats of Substitute Products Takara Aquaroid will also face potential threats on substitute products or services. Real organic pet is one of the substitute products for Takara Aquaroid. Pet owners are still very fond of their pets. Companionship is the principal reason that most people give for keeping pets (Gunter, B. , 1999).
The Business plan on Market Segmentation, and Product Positioning
For the purpose of this assignment, I am assuming myself as the owner of a plastic molded toy company in United States that manufacturers, and distributes plastic molded toys through retailers across the country and around the world. The company is capitalizing on the strong growth in the children’s toys segment and planning to expand in an aggressive manner throughout the nation. The company ...
Pets can help keep older people alive and feeling young. Moreover, other electronic pets also impose threats to Takara Aquaroid. As Tamagotchi’s have come and gone, we are now having more and more mobile robotic pets with much more sophisticated personalities, such as cute cyber kitten, dog, teddy bear and other electronic creatures. 4. 2. 3 Bargaining Power of Suppliers Moreover, bargaining power of suppliers will also impose competition on Takara Aquaroid providers.
! SSThe first decade of the 21 st century will be dominated by robots, !” said Toshi tada Doi, a corporate vice president at Sony and head of the company! |s Digital Creatures Laboratory (IDG News, 1999).
The future development of virtual pets is optimistic. Provided with the latest technological know-how, in particular on the artificial intelligence, many high-tech developers will flock into this profitable market to provide more interactive electronic pets. 4. 2. 4 Bargaining Power of Consumers On the other hand, bargaining power of consumers will act competitive force on Takara Aquaroid.
Because of the change to a digital economy, people become more able to accept electronic product and they are not as technophobe to machines as that in the olden days. Many people would prefer something more social visible. Their ever-changing buying behaviors increase the demand for new cyber pets. In addition, people are more prone to getting updated information of newly launched models, they are more willing to make up their purchase decisions once the products are available on the market. 4. 2.
5 Rivalry among Competitors In addition, strong rivalry among competitors gives an important signal for Takara Aquaroid marketers. Many leading Japanese firms have core technological competence and marketing experience in manufacturing robotic pets. Many competitive products of entertainment robot are found in the market. The main competitor! V dog-like Aibo takes a dominant position in the global market through intensive marketing programs by Sony Corporation. Aibo! |s artificial intelligence is capable of learning, expression of feelings and responding audio commands. A number of virtual pets are on the market, ranging from Bandai Co.
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Ltd. ! |s Tamagotchi to Furby from Tiger Electronics and Matsushita Electric Industrial Co. Ltd. ! |s Tama (Drexler, M.
, 1999).
Thus, we can see that there is a keen competition among all the rivalries. In order to maintain the market competitiveness, Takara Aquaroid marketers should think of a more niche marketing way in differentiation their product and services offered with those dominant market players. 4. 2. 6 Relative Importance of the Environmental Forces Among the relative importance on the five forces to the electronic pets industry in Takara Aquaroid, it can be generalized that the competing force on the new entrants and rivalry among competitors are relatively more significant.
We cannot deny that we should not underestimate the immense and advanced development on information technology. Those technology providers, such as Sony, Bandai, Panasonic and Matsushita, are striving to develop a more advanced, interactive product on a wireless platform of which has a more powerful human intelligence. Moreover, they can share larger volumes of knowledge with suppliers and strategic partners. For perhaps 30 years, the greatest impact of IT has been its ability to create linkages and establish an inter-organizational system across boundaries (Kaufman, 1966).
Widespread access of mobile or wireless devices will ensure increased reliance on shared knowledge networks for a more diverse business process.
Thus, Takara Aquaroid can attract more new entrants and lead to fierce competition of the market in the near future. 5. 0 market segment and target market 5. 1 How to Segment the Market? The idea behind segmenting markets and selecting a target is to identify group (s) of customers who share similar needs and consumer behavior characteristics and who are responsive to the firm! |s offering. The bases on which segment being identified and analyzed are many and varied.
In order to identify the most profitable customers and optimize the marketing resources for your company, we will divide the customers into groups, based on important characteristics that distinguish between customer groups in terms of the choices they make and the reasons they buy. Basically, the segmentation process could follow the steps below, 1. Divide the market into groups, based on variables that meaningfully distinguish between customers! | needs, choices, and buying habits. 2.
Description of the customer! |s profile within each segment is prepared. 3. Evaluate the attractiveness of the various segments and select a target market. 4. Position the product within the segment selected. 5.
2 Critical Issues to Consider in Segmenting Your Market for Takara Aquaroid In order to present and describe the customers in the most effective way, critical issues in understanding high-tech customers should be considered, such as, types of customer behavior in making their buying decision and attitudes of customer towards innovation. The first issue in understanding high-tech customers is the type of customer behavior in making their buying decision. Usually high involvement is involved in the buying decision for new or high! Vtech products because of several reasons. As we know that the TAKARA AQUAROID! V a high-tech leisure product which provides fun for its customer and thus entails high level of hedonic importance (John H. A. , 1984).
Besides, the price of the TAKARA AQUAROID is relatively high and involves significant level of purchase risk. With the two factors above, this would result in a high level of consumer! |s involvement. Another significant factor that should also be considered is their attitudes towards innovation. Investigating the adopter! |s categories of the consumers is one of the best way to understand their attitudes towards innovation. According to the traditional adoption and diffusion models, the innovators, early adopters, early majority, late majority and laggards (Moore, Geoffrey, 1991) as shown in the figure below (Figure 2).
Each category of adopters has unique characteristics and differences exist between each group of adopters. Potential difficulties in accepting our high-tech product – TAKARA AQUAROID will be experienced if the same marketing presentation is used for all groups of adopters. All the differences among the groups are opportunities for marketing to lose momentum, to miss the transition to the next segments. This ultimately results in ineffective marketing effort and will never gain the market leadership. It is very important for us to study the factors contribute to these differences and determine solutions to overcome them. The information about categories of adopters could be gathered by studying the lifestyles, personality and the way they spend their money on the high-tech products.
In fact, this information can be found out through psychographic analysis. Therefore, Psychographic analysis was adopted in our first step to divide the customers in groups. Psychographic analysis is a process which consumer! |s lifestyles (including their activities, interests, and opinions), personality and demographics are investigated and the consumer segments are described in terms of how they work, live, and play (John, C. M. and Michael M. , 1997).
Through this analysis, the variables described (such as, consumer! |s lifestyles, personality and demographics) were investigated which becomes the most helpful information for us to understand and to develop the customers! | profiles. The second step began after the profiles of the customers with each segment were developed. The target market (the most profitable segment of customers that would be interested and responsive to our high-tech product – TAKARA AQUAROID) was determined in this step by evaluating the attractiveness of all segments. Besides, it provides the basis for us to formulate the best marketing strategy.
5. 3 Your Right Target Market 5. 3. 1 Evaluation of Segments Before choosing the target segment, the company has to evaluate the market segments in their segment size, growth, level of competition and capability of company to serve the needs of the market segment.
Size of the segment is not definitely relating to the number of customers. It refers to the potential sales volume. The size of the middle to low income groups may be larger, but their money spent on the high price leisure product would relatively low as they would not have much spare money to spend on it. Moreover, small company can implement their market strategy more efficient.
Growth of the segment does not only mean to capture other companies! | market share, but also to expand the whole market. As the rise of customers! | education level, the group of innovators and early adopters are growing. Level of competition within the segments will affect the cost of a company for their new product. Aquaroid is a new technology leisure product, which is living in an aquarium. It is unique and no perfect substitute, especially in the mind of the innovators. However, there are still potential substitutes like other high technology leisure product like electronics dog, etc…
Capability to serve customers wants and needs is from the company! |s point of view. The company has to estimate whether they have resources and ability to satisfy the wants of the customers within their target segment. 5. 3.
2 Selection of Target Market With consideration of the above criteria, the next step is to determine which and how many segments to serve. We recommend targeting the market segment of high income working people with higher education level. Also, the innovators or early adopters are our target segment. They have great purchasing power on leisure products. And it is easy for them to adopt new technology products. We are not going to choose many segments because high technology firms always make a mistake to target multiple segments for maximize their business opportunities.
They finally fail due to ineffective allocation of their limited resources. Referring the selection of a target market, it will be the beachhead that it performs as the leader to other segments. Other segments will follow the leaders by word of mouth effects between customers. As our target market is innovators, who are the expert of technology, other customers may take their advice to try these new products. We believe that youngsters and some elderly will follow the beachhead to be our customers.
5. 4 Positioning The final step is to position your product based on customer! |s perceptions of your important product attributes and relative to the competitors. The positioning can base on product attributes or directly against a competitor. As we mentioned above, there is no direct competitor for this new technology product, we will position our product basing on their products attributes.
We recommend positioning it by its high-tech image. Although the function of this product is for leisure, it provides the perceptions that the owner of this product seems to have good sense on the new technology. Customers will proud of being an innovator. And it is very easy for those busy people to take care of it. Customers will be benefit from the recognition by peer groups.
6. 0 Marketing Plan 6. 1 Distribution The two main channel objectives are (i) cost effective, and (ii) facilitate our target customers. The distribution channels must be cost effective because the import cost is already very high.
So lowering the distribution cost is important. According to our analysis, our target customers have their own living style. So, the distribution channel should be wider than before. Hybrid marketing channels should be introduced for this product. It can be divided into three main channels. 6.
1. 1 On-line Sales The product is introduced on the web site. However, customers cannot make purchase on the Internet. In order to highlight the product, pop-up window can be used.
After the introduction of the product, customers should be able to place order through the Net. This can shorten the length of the channel which means cost can be lowered. Besides, the product can be exposed more to the public through co-operation with other famous web sites. For example, red-dots. com and go 2 hk.
com are the most popular on-line bidding sites in Hong Kong. They have over 180, 000 members altogether. If customers can purchase our product through these web sites, they will feel more convenient. 6.
1. 2 Retail Sales Since people prefer to have a look at the real product before purchasing, the selection on the retail spots is very important. JC Shop This shop is very famous for trendy Japanese products. From our analysis, our target customers are a kind of pioneer.
Moreover, the shop is going to open a new branch in Times Square in December. The promotion of the opening is intensive, so it is a good place to put our product. Another advantage of this shop is that they can promote your product on-line as we mentioned before. Toys RUs It is a well-known toy chain store in Hong Kong.
They have branches in different popular shopping malls like Ocean terminal and Festival Walk. According to our analysis, our customers prefer to walk around and look for new things. These shopping malls are one of their choices. In order to facilitate them, they can place their order and we will deliver the product to them. Aquarium Store Since the product is a kind of marine living, people that are interested in that may visit the aquarium store. For example, Tung Choi Street in Mong kok is a street filled with aquarium store.
And the most popular and biggest one is called Lui Kung Aquarium. In order to facilitate the customers of this type, to put some samples of the product in some big stores on this street and let them buy our product there will be suitable. 6. 1.
3 TV Sales There are a few TV programmes that promote new products overseas and you can buy them by phone. This kind of programmes is welcomed by our customers because they can look for new things that cannot be purchased in Hong Kong. They can try them beforehand. Moreover, the channel length is also short and the cost is not very high if we select TV sales. 6. 2 Pricing As mentioned earlier in our competition analysis, there is no direct competition of Takara Aquaroid, i.
e. another electronic aquaroid in the market at the present moment, or expected in the near forthcoming. The manufacture! |s using skimming pricing strategy is appropriate. Skimming means a company keeps price and profits high, milking the least price-sensitive customers before pursuing another market. (Schewe, 1966) As Takara Aquaroid is targeted at the middle level group and the imported cost for the dealer is so high, the dealer advises the retail price of around HK$10, 000 is fair under the cost-plus approach.
This particular customer can afford it and will still purchase the product if they like the product. 6. 3 Promotion In the coming paragraphs, we would suggest strategies that focus on the three main objectives of Promotion: informing, persuading, and reminding. Since the direct cost of the product is already very high and the spending power of our targeted customer are conserved during economic downturn, cost-effectiveness will be our main basis. We will not suggest high cost campaigns, as it will be too risky. Advertisement in monthly magazines like! SS Lifestyle!” and! SS Home Journal!” .
Though the product has been in Hong Kong for one year, the most majority of our targeted consumers are not aware of it or do not have a concrete image of it. Advertising on such magazines will appeal to them more effectively as our targeted customers treasure life style. We suggest advertising for about a year and on alternately issues of each magazine. Sponsorship as free gifts on TV shows and free rentals by TV media as background decorations on programmers. It is no doubt that TV is the most effective media for products with vivid images; however advertising on such media would be very expensive. Therefore, such strategy will be beneficial to both parties.
Sponsorship will be launched for about half a year and free rental will be launched continuously. Payment by installments. Many middle-income level are suffering during the economic downturn, they will be hesitated in making a purchase that costs thousands of dollars. As such, we recommend the company to invite financial institutions to offer payment by installments to its customers. Provide Pamphlets about product specifications. Since our targeted customers are highly involved upon their purchase of our product, the more information we can provide, the more helpful we will be to realize the purchase.
However, at the present moment, only the web site provides product specifications and no printed pamphlets are available at the retail shops. Free delivery and good after sale service including warranty. Since the product is a luxury, the customer will appreciate complimentary delivery. Also, as Takara Aquaroid is a new product of high technology, the customers may worry what happen if the product breakdown as general technicians cannot fix it. Therefore, we recommend extending the free warranty from one month to one year and the warranty service should be renewable at a stipulated cost.
Provide training to retails shops. Upon our site visit, the sales staff does not know much about the product technology. In addition, the shop even replaced the spotlight bulb with the general high voltage bulb and consequently the fish and the jellyfish do not move at all. Such act should be prohibited as this occurrence will inspire bad impression on the prospective customers that the Takara Aquaroid can easily breakdown and even the! yen professional! | cannot fix the problem. 7. 0 What are Your Next Steps? 7.
1 Why and How to Implement the Plan? (a roadmap or implementation schedule) 8. 0 Conclusion: Looking into the Future With the help of technology outburst! K. (we can emphasize! SS Your Digital Home of the Near Future!” ) References Cateora, P. R. and Graham, J.
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The Portable MBA in Marketing, John Wiley & Sons, Inc.
