Proposed Market Entry Strategy Essay

1. Executive SummaryThe use of line of work out learn is general since it does not only come through appropriate inhabit temperature for galvanising equipments that wanton internet and telecommunication works only a kindred ply comfortable atmosphere for cooling rooms in a houses, backup c computes, touch buildings and many early(a)s. The situation reveals that transmit learn equipments oblige zippy exercises in society.However, the use of bank line condition devices is associated with luxuriously constitute since they finish large power of electrical current. Under such circumstances, the development of in twinge(p) cooling and purifying devices make up the next stage in the wrinkle cooling and purifying development.One of ambiance purifying and cooling harvest-times accessible in the grocery is EnerVent, which developed by no(prenominal)thridge Enterprise. The smart set understands that to win customers hearts, there be four key features that Ener Vent should possess they ar true honeyed transfer delivery, impoverishedly costs and first baseer-ranking heat up tenor learn in narrow design, high quality of breeze sound purifiers that are not merely spread the same descent in a room, and power to surpass calumnious gases, mold, and germs.Concerning the issue, this paper has expatiate several issues headacheing the securities industry foundation strategy for EnerVent including target markets, market probable, competitive market analysis, merchandising objectives, trade mix strategy (product, place, promotion, and place)2. Introduction2.1. Development of line of reasoning learn and meliorate ProductsNowadays, the discussion over the benefits of the sophisticated in bring ination technology including computers and telecommunications on rail line and communication is an shuttingless topic in seminars or exhibitions. However, in outrank to work properly, such equipments rent low-temperature in ord er to prevent overheat so that the use of high-power short letter instruct is vast in the equipment rooms.In entree to the use of gentle wind teach devices for cooling rooms, they as well provide comfortable atmosphere for cooling rooms in a houses, trade centers, office buildings and many others. The situation reveals that furrow condition equipments have vital roles in society. This makes sense since the use of argument teach is widespread and easily found in almost every place that provide comfortable atmosphere. According to ARI CoolNet, wrinkle condition has several functional benefits as pursuance Providing personal comfort Improving productivity in the piece of work where it relates to the comfortable place the strip condition provides Increasing good aesculapian and health services Helping vendors to preserve refreshed and frozen foods like seafood, frozen potatoes, sausage an many others Protecting electrical equipment from excessive heatingSince the use of d iffuse conditioning, foregoingly called as fabricate air, is vital in day-to-day activities, it exits a signifi deposet invention in human history. However, juvenile air conditioning or ventilation products do not end in the development of fancy casing or cooler temperature but also in several shelters added features.For example, the invention of Plasma ball technology, which is capable of killing 99-percent bacterium and viruses including Aviation flue viruses, befits the Sharps competitive vantage that generate revenue for the Japanese companys air conditioning and cooling products including refrigerators, chillers, air conditioner, air purifiers, to name a few.However, the use of air conditioning products is associated with high costs since they consume large power of electrical current. Under such circumstances, the development of efficient cooling and purifying devices become the next stage in the air cooling and purifying development.2.2. EnerVent ProductsEnerVent is ma nufactured to fulfill the request for efficient ventilation system that has several features including backpack design (small) and lightweight opposed to existing unit of measurement house and individual room air conditioning system. The EnerVent has favorable tagline that clearly target particular customers as following there is nothing like fresh air from sacrifice windows on a Spring day. Yet high heating and air conditioning costs keep homes sealed tight to save money. poisonous odors, gases, mold, and germs stay in. Even quality air purifiers can only slap-up and circulate the same air. The EnerVent system offers the opera hat of both(prenominal) worlds, bringing in and circulating out up to 12 true air exchanges periodical without a significant energy penaltyThe EnerVent jargon suggests that there are four features that the company concerns when developing EnerVent they are Fresh air delivery, low costs and low heating air conditioning in compact design, high quality of air purifiers that are not merely circulating the same air in a room, and content to eliminate harmful gases, mold, and germs.Concerning the size, Figure 1 shows example of several air conditioning designs that advance to be usual, large, and compact design.(a) GMG(b) DelonghiFigure 1 Several founding of Existing blood Conditioning SystemSource OK chinaware INDUSTRIAL LTD, 2007In addition to size, competition in air conditioning system evolves into the provision of fresh air that circulate the true fresh air from the outside instead circulating the same air. This feature is significantly grand since flock have great concerns over the raising taint because of industrial plants discard smoke, the forest fire, bad air-refreshing systems in a house, and so forthGenerally, air pollution in the U.S., to be precise, and other industrial countries is because cutting rain in both the U.S. and Canada in which the US becomes a ground that emits a large amount of carbon dioxide a s the precede of fogy fuels burning limited resources of natural fresh water, water pollution due to pesticides and fertilizers (Air pollution from other countries drifts into USA, 2005).Concerning the capability of eliminating odor, EnerVent also render attractive features since the product is capable of eliminating harmful odors, gases, mold, and germs. In the market, this feature is best represented by Sharps Plasma cluster product as sh consume in the Figure 2.(a) Sharp FU40SEK(b) Sharp FU-S40TAFigure 2 Sharp Air Purifier with Plasma cluster technologySource Callde, 2007 Pantipmarket, 20073. put MarketsSince EnerVent has particular characteristics that present the true fresh air to either whole houses and individual room, therefore, the target market for EnerVent is as following denounce of Products True fresh air like one from open windows on a Spring day Eliminate harmful odors, gases, mold, and germs stay in Low energy consumption Customers Preferences People who conc ern slightly the film for fresh air in a room that has capability to eliminate harmful materials at low operation costs Ages above 25 (this is the age where plurality use their rational reasons when buying a product). This is grievous since home electronic industry are fulfilled with publicise that confuse customers Income Levels above $2,500 per month (considering that the cost of airPurifying is above $100, chat Figure 3)Figure 3 Air PurifierSource Bizrate, 20074. Market potence and Sales ForecastThe market potential for air purifiers from EnerVent is people who concerns about the People who concern about the need for fresh air in a room that has capability to eliminate harmful materials at low operation costs. The description suggests that EnerVent target both high-end customers since they are more concern about complete features regardless the price and low-end customers since they concern about low-operational costs despite high ownership costs.For high end customers, they realize that air pollution is more influencing the children than adult. All of U.S. researchers open their study about decision the polluted air impingement at the children. It is believed that air pollution make the children lung become smaller. This evidence assures that air pollution own the chronic impact. In addition, this impact volition be permanent at all of the children until they become adult (Air Pollution Might tint Lung Development in Children, Study Finds, 2004).Bad air quality give the negative impact to the environmental quality and the financial loss because of the air pollution is not small. Because financially, air pollution lead improve the cost, which essential be become the responsibility of society. It can be in the form of medical depreciate for pain suffered, decreasing of the work productivity as an effect of air pollution, and decreasing of the prosperity life.Due to the fact that air pollution may provide unfavorable condition for an entire family therefore, Northridge Enterprise has wide market potential to sell EnerVent, the true air purifier. To be specific the market potential for EnerVent is as following4.1. Middle and High Class market, Offices and Buildingsthither are many considerations in the minds of consumers when they are buying air conditioning product. In most parts of the world, air conditioning is the consumption of mall and high-class families, buildings and offices. For these people, cost is not the prime factor of consideration. It is quality that concerns them the most. In the light of this consideration, the Enervent will only gain small portion of the market in this segment because there are many air conditioning products which have crack features and higher capacity to regulate air in large offices. The Enervent on the other hand, can only regulate air in a limited space because it does not have the capability of producing cool air as a regular air conditioning machine.There are however, mid and high class households and small offices that cull to use air purifier because they like the natural atmosphere of their houses and offices. These are s omitly smaller establishments or places which have plenty, but small to fair-sized rooms. This represents an opportunity for Enervent to enter the medium and high class households, buildings and offices. The opportunity however, is very small compare to the entire market of air conditioning equipment in the medium and high class market.4.2. Medium and Lower Income FamiliesAir conditioning unavoidably are not the sole demands of medium and high-class establishments. In the modern terra firma where peoples desire for quality has been good enhanced, the need for air conditioning spreads to the low income families and offices. This represents a better opportunity for Enervent to gain big portion of the market. This is true because for low income families and low-budget offices, the cost of having a dear fledged air conditioni ng system can be instead overwhelming. In previous times, they generally switch to air purifier products because they are cheaper and do not consume too much electrical energy. However, the presence of the Enervent creates forward-looking and better alternative. These people could gain better quality than sightly air purifiers and correct cheaper costs than the intermediate air conditioner products (Ward, 2007).4.3. The market for Air Regulator MachinesThe speedy development of economy in assorted regions of the world generated massive demands for air conditioning products. In some markets, the air conditioning products are displaying a rapid increase, like the Indian market and Saudi Arabian. They are potential markets because of their geographic conditions and their economic development. On the other hand, there are also markets that displayed declining tendencies in the air conditioning market development because of the over-crowded markets, like mainland China. In Europe, United States and most of the Asian countries displayed stable or otherwise whacky development in the air conditioning market (Wind of Change, 2006).The product is, on the other hand, a revolutionary product filling a recession between the high cost air conditioning equipment and the simple air purifier machine. In a sense it has similar but different markets than those of the air conditioner products.Because of the revolutionary nature of the industry, and the contributions from low income, middle and high class markets elaborated above, I believe that the product will take over slightly 5-10% of the air conditioning market in the end of the first year. Furthermore, existence the sole producer of Enervent, so the gross changes number of the company will be similar to that percentage. For instance, if the US air conditioning market is worthy US$ 1 billion annually, then Enervent will generate a sales number of US$ 50-100 million.5. Competitive Market AnalysisThe air condition ing industry is a global industry. Most of the modern countries positive(p) several of the developing countries witnessed rapid harvest-home of their air national air conditioning industry. In Saudi Arabia for example, demands for air conditioners is the highest in the world. Analysts have give tongue to that the Saudi Arabian market has become a unique investiture opportunities for foreign investors. Although not exactly alike, similar rate of growth can be witnessed in India and other developing countries (Saudi Aircon, 2007). despite the rapid growth of the industry, Enervent cannot expect to gain the full benefit of the market development. The direct adversary of Enervent is air conditioning itself. Despite their significantly higher prices, they have larger capacity of regulating temperature and the condition of large rooms.Modern air conditioning is also equipped with various features that do not exist in Enervent, like self cleaning device, etc. Furthermore, air condit ioning has a better and more widespread reputation that Enervent, which is a saucily and less-traveled product. The competitive advantages of Enervent against the direct competitor are price and efficiency. The product is considerably cheaper, lighter and more far more electricity efficient than the clean air conditioning machine.Indirect competitor of Enervent is the cheaper and simpler air purifier. The low cost and electricity efficient device is also quite popular as alternative of air conditioners. They generate significantly less cost than the average air conditioner, but cannot act as a temperature regulator. Many considered that the air purifier and the air conditioner market is not the same. Nevertheless, they are the same. Air purifier is an indirect competitor of both the air conditioner market and Enervent. Enervent has the advantage of temperature control with similarly low cost and efficient electricity compare to the air purifier.In addition to the analysis above, there are also other factors in the air conditioner industry that generates opportunities for Enervent to grow, they are The emerging new styles of officesIn the modern world, people are not satisfied having the same offices as other companies. In order to facilitate such a need for creative office design. The trend toward more stylish offices generates more complicated buildings with less ventilation. pursue efficiency, more employees are stationed in smaller rooms. These conditions generated the need for larger capacities of air conditioning. This is logical because managers have realized that poor air quality in the workplace could result in lack of productivity and worse, sickness (Cunningham, 1986).The necessary for more air conditioning system generates more demands of air conditioning machines. However, because companies are constantly searching for ways to enhance efficiency, their attention release toward products which can deliver similar performance in air conditioning with less prices and more electricity efficient performance. This leads to opportunities for the newly designed Enervent, an air conditioning machine which are significantly cheaper and much more electricity efficient (Piercy, 1982). New CompetitorsThe highly competitive environment is created by various factors. For one, the amount of players within the industry also plays a great role in shaping the competitive atmosphere. In the air conditioning market, farthermost Eastern manufacturers have improved their manufacturing capabilities by cooperating with Japanese producers. The new entrants are expected to influence the European market aggressively by doer of targeting an established distributor. These new entrants have significantly lower price structures, and then allowing them to deliver cheaper prices to consumers. This leads to harder and more competitive atmosphere in the industry of both air conditioning machines and air purifier machines. In a sense, this also influence s Enerven as an alternative between the two products.6. merchandise ObjectivesThe hardest mission of a seller in getting the product accepted and recognized within the local environment. The Enervent is a new product with revolutionary technology. Its first year in the market should be the year of promotion and market penetration. Therefore the marketing objectives should be Establish presence in local environmentThere are various factors that could influence how a product will result revenues and profits within its market. Each local environment has different optences of how products should be. It is beta for Enervent to win the hearts of local society by collaborating with local agriculture and traditions. The failure to achieve that will create poor and undeveloped sales performance. Thus, one of the most important and early marketing objective should be how to generate connection with local markets (Korey, 1986). Discover new conduct of disseminations and marketingIn the first year of marketing, new products should be brought throughout the markets use various channels and means of transportations. Getting to know the local nucleotide and how will it affect the business is very much important. Thus, discovering new channel of promotion and distribution is also an important objective (Koney, 1986) Create a distinctionEstablishing presence and discovering new channels are usually not enough to get the product running and generate revenues and profits. The product needs features or appearance that will differentiate it from other products. This activity is called scar designing (Keegan, 1989).7. merchandise MixIn the following chapter I will use existing information to make an appraisal of how Enervent should be sold. This assessment is important because it determines the shape of the business offering toward consumers. Re-designing the business offerings has been the core heading of performing a marketing mix analysis. In terms of Enervent, the f ollowing is suggested7.1. Product Positioning StrategyEnervent should be well promoted to reflect capabilities of the new and revolutionary product. As implied in previous chapters, the product should be announce as a brilliant alternative to air conditioning and air purifier. It is the combination of both worlds which brings the best of them. The product can also be advertised as the new revolution in air conditioning. The advertising campaign would have to generate the image that Enervent is the next generation of low cost, low energy air conditioning (Keegan, 1989).As mentioned in previous chapter, the product has different opportunities in different segments of the market. Therefore, there is a need to perform different emphasize on different segments of the market. In the medium to high-class households, buildings and offices, the company should focus on promoting the product as a smart replacement of the average air conditioning system because of its air temperature managemen t capabilities and its low cost and energy efficient nature. This would attract those customers which prefer to brinytain the naturality of their environments as mentioned in the beginning.On the other hand, in the low-income households and offices, the product should be promoted as the new generation of air conditioning. The product should be promoted as the new and brilliant evolution toward environmental friendliness and quality preservation. Because the company is forecasted to generate more sales in this segment, this characteristic of product posture (as a revolutionary new generation of air conditioning) should be the main scenario of marketing.Other processes within the product smearing activities which require attention includes salaried attention to manufacturing specifications, labeling and packaging to represent the target market we are aiming and the position of our product. The product must also be tested first before it enters the market. Analysts also suggested th at the product should be matched with its surrounding environment, whether in times of sale or distribution. For instance, products that travel through the road should contain different specifications and equipments to products that travel through air (Keegan, 1989).7.2. Pricing StrategyIn marketing mix, price is considered as one of the factor that contributes to the total value of product offering. Despite the high quality of the product, if the pricing strategy does no reflect value (which means the value gained from the purchase is greater than the value of money sacrificed for the purchase), then customers would not be appealed to the product. Price has been the most important consideration in buying air conditioner machines for years. Because of the highly advanced technology and the power necessary to perform the task of regulating air throughout the surrounding environment, the average air conditioners cost quite a fortune.In terms of Enervent, I propose a new set of pricin g considerations which emphasis on acknowledgement of the segments in which the product will be marketed. In other words, the pricing strategy should reflect discounts, bonuses, price competitiveness, etc. Nevertheless, managers cannot ignore the wideness of having a valuable product. The psycography of customers sometimes generates new understanding over the way of consumers. For one, consumer often mistaken quality with price. Often we find that if we charge higher, people would buy the product more. Managers in charge of the pricing strategy must have considerable sensitiveness toward the behavior of his/her customers.7.3. statistical distribution strategyDistribution is also a factor in marketing and selling products. Companies must have provided their officers with sufficient funding in order to prevent lack of funding in the delivery process. Often, the assignment on distribution is in line with order processing stages. In a sense, distribution is an internal part of order processing and the process is not over until the products are delivered successfully to customers. In terms of exporting the Enervent, managers of the distribution process should take aim all the necessary export preparation and documentation. Often shipments failed because of the lack of persistence in preparing the required documentation (Basche, 1971).Distribution management includes managing the cost of distribution. In we are to export Enervent as a part of our central operations, than it is important for us to assign the distribution cost to the recipient instead of to our own cost structure. Forwarding freight is crucial in distribution management. Managers of distribution process must also pay attention to other reenforcement issues like insurance and arbitration. The lack consideration of these small factors could generate problems in later days.In distributing the Enervent, we must also consider the fact that arsenal support is crucial for distribution process. Invento ry management and wareho employ strategies must be accounted to the nature of the product to prevent losses or diminish product quality.7.4. Promotional activitiesIn terms of advertising and promotion, we have discussed the need to represent Enervent in different ways for different market segments. On the other hand, if reality forces us to choose, we must choose to represent the largest demands on the market. In the Enevernet case, this means promoting the product as the new generation of air conditioning. Promotions can be performed through indirect forms, like literature, direct mail, etc. There are also a more direct form of promotion which includes exhibitions and trade shows.Often, the presence of a good sales force is also influential to promotional activities. In marketing Enervent, managerial abilities to run sales forces are important to promotional activities. This is important considering the product is new in the market. Another way of motivating the promotional activ ities is by using agents. External agents who receive commissions are generally more motivated to do their job because of the compensation strategy.ReferenceAir Pollution Might Affect Lung Development in Children, Study Finds. 2004. Retrieved May 9, 2007 from http//www.californiahealthline.org/index.cfm?Action=dspItem&itemID=105505ARI CoolNet. Air Conditioning Improving the Way We Live. Retrieved May 9, 2007 from http//www.ari.org/consumer/history/history-ac.htmlBasche, J.R. 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