I am being asked to put together a response for the following q's. Can you help me get started on what is REALLY being asked from a acost accounting perspective?
1.What is your initial market introduction plan for the CMSS pads?
2. What should be the goal and objectives?
3. In addition to the price, provide some specifics for target segment, channels of distribution, and marketing communications.
4. What would be the most challenging part of the initial marketing? Why?
The costing perspective is that the question wants you to say that using curled metal shock system data in Los Angeles, you can show that irrespective of the cost of CMSS it helps save money, by way of fewer pads used, it helps save labor because of the fewer number of changes made in the pads. So is makes sense for the prospective buyers to buy CMSS pads! You need to give them the arithmetic if they insist.
Initial market introduction plan for CMSS is to target the three segments that have been identified by the companies.
1. Manufacturers:- these should be approached by the company sales personnel and should be explained the comparative benefits, of CMSS pads, the Los Angeles highway project results should be shown to them in a presentation and the advantage both financial as well as time-wise advantage should be explained to them. They should also be given samples for trying out on live projects and then followed up for further orders.
2. Architects/consulting engineers are the best bet for the purchase of these pads, they need to be approached, appointments obtained and presentations made explaining the technical superiority of the pads. These architects can be given samples and their responses should be studied and their concerns addressed. Price need not be much of a concern with the architects but technical superiority would really make the difference. Once the performance of the piles made an impact on the architects and the architects prescribed the CMSS piles then these piles would become the industry standard.
3. Pile hammer distributing and renting companies should be approached with the product, the strategy of the sales persons should be to stress that using the CMSS pads increases the life of the hammer and that the deleterious effects of heat and inadequate cushion do not adversely affect the hammer in case of CMSS pads.
THE GOAL AND OBJECTIVES OF TRW
1. Since no body else is having the product, which TRW is offering there, is a potential that it can establish a monopoly! This is an excellent opportunity for TRW where it should follow the strategy of quick penetration.
2. Price: the price should be kept as low as possible in quick penetration strategy. It can be kept as low as $300 depending on when the department wants to generate profits.
3. The pads should be packaged distinctly from other products, should be branded and should contain instructions on using it along with the information that the pads are decidedly superior to the other pads in the market.
4. There should be advertisements in Architecture magazines and other construction trade journals. Each copy should stress the superiority of the pads along with a brief introduction of the company and its importance in the national economy.
5. Personal selling ...