Mc Flavor Grill
The Mc Flavor Grill supports our Company G mission Statement of: “We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions”. The Mc Flavor Grill provides a convenient electronic start that ignites the flavored wood pellets with an innovative heat rod and incorporates this with an electronic thermometer that will establish a consistent cooking temperature while barbequing and smoking meats.
The Mc Flavor grill will improve the quality of consumer’s lives by simplifying BBQ activities with a cooking device that produces a quality and flavorful finished product along with a convenient way of cooking. The wood flavored pellets will enhance the flavor of meats which will translate into an improved quality of the finished product. The innovative design of the wood pellet burning device will eliminate BBQ and smoking flair-ups that are typical frustrations with charcoal and propane barbequing. Product Classification
CONSUMER FACTORS The Mc Flavor Grill will be considered a shopping product in the 3 way product classification. This is supported by the following: -The planning time involved with the purchase will average from 1-3 months -The purchase frequency will average every 6-10 years (less frequent) -The importance of a convenient location will important but not critical. Only a few select outlets will be required in a geographic location along with internet outlets. -The comparison of price and quality will be considerable as the consumer will compare the Mc Flavor Grill to other products available. MARKETING MIX FACTORS
-The price of the Mc Flavor Grill will be relatively high in comparison to traditional charcoal and propane BBQ’s available. -The importance of the seller’s image will be important and the great news is Company G has already established an image of quality to consumers. -The distribution channel length will be relatively short and will have limited distribution channels. -The number of sales outlets will be a few select specialty stores and on-line retailers. -The promotional strategy will be supported by personal selling by our sales representatives and demonstrators. These activities will supported with advertising by Company G and our retail outlets.
Considering all the consumer factors and marketing mix factors it is clear that the Mc Flavor Grill is classified as a “Shopping Product” in the 3 Way Product Classification Targeted Market. The targeted market for the Mc Flavor Grill will be as follows: -Household income of $40,000 and above. -Average household size will be 3 and above -Education will be high school graduate and above -The typical race of the purchaser will be Caucasian. -Consumer hobbies will be an outdoor enthusiast that lead an active lifestyle hunting and fishing, avid backyard entertainers, and barbeque enthusiasts. Analysis of Completive Environment
-Threats of new entrants does exist with the BBQ grills becoming more popular with consumers especially pellet burning BBQ versions. History has shown that the average new entrant into this category has been 1 new company every 6.5 years. There are also other new entrant threats from different categories of BBQ cooking devices such as The Egg, indirect charcoal grills and redefined propane gas grills. -Threats from buyer are moderately high with several competitors offering similar substitute products and other BBQ grills. -Threats from suppliers do exist due to the fact that we will need to solicit additional resources for 2 new components’ to produce the Mc Flavor Grill. The 2 new components needed are the heating element rod and the electronic temperature control panel. -The threat for substitutes is relatively high. This is driven by several different BBQ devices and categories that exist today. Consumers have the option to purchase inexpensive and moderately priced versions of charcoal and propane BBQ grills. The consumer also have available moderate/high priced pellet, charcoal, and propane BBQ’s as well.
SWOT Analysis for Company G and the Mc Flavor Grill STRENGHTS -Company G is well known for quality and reliable products by our consumers. -We continue to developed products with artistic designs. -Logos are readily recognized. -Company G has a high credit rating and low debt ratio. -We can leverage existing relationships with our existing retail outlets. -Company G is a low cost producer WEAKNESSES -Mc Flavor Grill will be a new entrant to the BBQ grill category -We will need to identify 2 new component producers for the heating rod eleent and the electronic thermometer control panel. -We will need new raw material suppliers for the pellets we can offer consumers OPPORTUNITY’S
-Mc Flavor Grill will enter new demographic markets that will translate into our logos recognized by consumers for future purchases of products we offer in other catagoriesand product lines we offer today. -Fill a niche for themed BBQ’s that will replicate characters such as pigs, cows, and chicken models. -Establish the company as a recognized quality brand of BBQ/Smokers and expand into a brand new category of appliances. -Leverage our well recognized company logo
THREATS -There are several established manufactures of BBQ grills and smokers. A few examples of existing manufactures are Weber, The Egg, Flame Grill, and Traeger. -Gas grill BBQ’s dominate the market share with a large variety of inexpensive gas grills that can be purchased by consumers in hundreds of distribution channels and retail outlets. -Current we are in a poor economy with high unemployment.
-Pellet manufacturers need to keep up with the demands by consumers while keeping prices low. Objective and Strategy Planning C.1: Product Objective: Introduce our new innovative Pellet BBQ/Smoker and sell 40,000 units in the 1st year, 120,000 units 2nd year 225, 000 units the 3rd year Strategy 1: Action: Design the mid-size grill and build a prototype and the package design. Due Date: 3/1/13 Responsible Party: Product Development Manager Budget Cost: $5,000 Strategy 2: Establish trademark and patents for the Mc Flavor Grill Action: Apply and submit for patents and warranties and attain confirmed licenses. Due Date: 6/1/13 Responsible Party: Legal Department Budget Cost: $7000
Strategy 3: Develop warranty for BBQ/Smoker Action: Write consumer warranty information memo for the consumers that purchase the Mc Flavor grill. Due Date: 7/1/13 Responsible Party: Legal Department Budget Cost:$1000 Monitoring Activity: Weekly product development team will meet to track progress of meeting objectives and brainstorm potential challenges and obstacles. When/Frequency: Meet on Bi-Weekly bases from 1/1/13 to 7/1/13 Responsible Party: Product Development Department and Legal Department
C.2: Price Objective: Enable our consumers to purchase a quality c Flavor Grill at a fair price while keeping our competition in front of mind by capturing a 10% market share gain and 8% profit gain in the first year of product launch in the Pellet BBQ category. Strategy 1: Evaluate competitor pricing strategies and the value they offer to consumers. Action: Understand the competitor landscape of price points and distribution channels they offer their products. Due Date: 2/15/13
Responsible Party: Marketing Research Team Budget Cost: $1000 Strategy 2: Evaluate Production costs and establish retail price points. Action: Run a production exercise to identify net cost of production for each unit produced of the Mc Flavor Grill. Due Date: 5/1/13
Responsible Party: Production Finance Team Budget Cost: $3000
Strategy 3: Introduce mid-size grill at an introduction price between$500 and $700 price point targeting a 8% profit gain. Action: Develop a manufacturing/distribution cost model and marketing cost model to produce a return of 8% profit margin for Company G. Due Date: 8/1/13
Responsible Party: Manufacturing and Marketing Finance Manager Budget Cost: $6000 Monitoring Activity: During the first 6 months of product launch our sales units will be tracked by sales and marketing departments and they will evaluate actual sales versus goal. Marketing will evaluate the return of investments of marketing activities and adjust tactics as needed. When/Frequency: On the 15th of each month data will be gathered from our sales teams of total units sold in each market. Responsible Party: Sales and Marketing Managers
C.3: Place Objective: Achieve distribution goals of 1500 retail outlets in 450 major cities in the U.S. Strategy 1: Identify key demographic locations and retail outlets to carry the new product line of Mc Flavor Grill. Action: Marketing will conduct studies and research demographic locations to identify the potential markets for product launch. Due Date: 5/1/13
Responsible Party: Marketing Manager Budget Cost: $2000
Strategy 2: Contact existing customers to carry our new product line of Mc Flavor Grill Action: Present sales presentations to our existing customer base and gain commitments to carry our new line of Mc Flavor Grills. Due Date: 6/15/13
Responsible Party: Sales Department Budget Cost: $10,000 Strategy 3: Identify targeted inventory levels of production to support initial product launch. Action: Based off initial orders sold to our retail outlets, establish production needs and inventory levels needed for initial rollout. Due Date: 7/1/13
Responsible Party: Production Manager Budget Cost: $500
Strategy 4: Establish shipping standards Action: Establish logistics of shipping of Mc Flavor Grill and the minimal pallet size drops for delivery’s and the costs related. Due Date: 6/1/13 Responsible Party: Logistics and Finance Manager Budget Cost: $1000 Monitoring Activity: The marketing department will report targeted markets at the 5/1/13 product development meeting. The Sales Department will track the orders being placed by customers and communicate to production inventory needs for production. Logistics will report progress of shipping standards to production. When/Frequency: Marketing reports to sales manager progress of research on a Bi-Weekly frequency on 4/1/13. Beginning 7/15/13 sales will report to manufacturing on a Bi-Weekly frequency the projected sales commitments to retail outlets. Logistics will report final shipping standards to production by 6/15/13. Responsible Party: Marketing Manager, Logistics Manager, Sales Manager C.4: Promotion
Objective: Increase consumer awareness of the new Mc Flavor grill by 35% in the 1st 6 months of product launch and sell 5000 units in the 1st 3 months of the product launch; Strategy 1: Advertise in specific demographic targeted magazines during the first 6 months of product launch. Action: Advertise a full page add in the magazines of Field and Stream, Outdoor Life, Backyard BBQ King, and Outdoor Cooking Due Date: 10/1/13
Responsible Party: Advertising Manager Budget Cost: $12,000
Strategy 2: In store demonstrations Action: Based on the top retail outlet orders placed by demographic area. In store demonstrations will be scheduled at specific sites for product launch. Due Date: 10/1/13 Responsible Party: Marketing Manager Budget Cost:$28,000
Strategy 3: Participate in Sportsman’s trade shows Action: Identify Sportsman’s Trade Show dates in geographic areas of product launch and schedule to participate in the event with cooking demonstrations with the Mc Flavor Grill. Due Date: 9/1/13 Responsible Party: Marketing Manager Budget Cost: Monitoring Activity: The Marketing Manager will report progress of scheduling events at Mc Flavor Grill monthly meeting prior to product launch. The results will be tracked of unit sales in specific areas supported by these events. The customers warranty cards completed by consumers will include survey questions that will provide feedback on location purchased, how they heard of the Mc Flavor Grill, and what was the deciding factor to purchase the grill. When/Frequency: After each in store demonstration and participation in Sportmans Trade Shows units will be tracked post the event for the first month. Each warrenty card returned statistics information will be gathered to capture marketing data. Responsible Party: Marketing Department