Ajax Alarms is a medium-sized U.S. firm that sells alarm clocks. It subcontracts the production of its clocks to a Korean firm, which manufactures them based on Ajax designs and specifications and then ships the clocks directly to the Ajax warehouse in Kansas. Ajax markets and distributes the clocks throughout the United States and Canada. The clocks themselves are brightly colored novelty items. For example, one of the firmâ??s biggest sellers is a plastic rooster that crows in the morning. Last year Ajax reported profits of $5 million on total revenues of slightly more than $50 million.
Ajax managers have determined that the firm has few growth opportunities in the United States and Canada and so must enter new markets if it is to continue to expand. The managers have decided to start by selling in Mexico. They have hired you, and internationally famous marketing consultant, to advise them.
Your assignment is to outline a marketing plan for Ajax. Ajax wants you to consider product policy, pricing, promotion and distribution issues. In developing your marketing plan, be sure to consider the factors discussed such as standardization versus customization, legal forces, cultural influences, economic factors and brand name questions. Note specific areas where you can make recommendations to your client. For example, if you believe a certain advertising medium will be beneficial to Ajax, make that recommendation (be sure to provide some rationale or justification). If you feel you lack sufficient information to make recommendation in some area, identify the factors that must be addressed by Ajax in a particular area. For example, if you cannot recommend a pricing policy, describe the information Ajax needs to acquire and evaluate when making that decision
See attached file.
1.0 Executive summary
Ajax is a medium scale firm that sells alarm clocks in the U.S. and Canada. The company is planning to launch its product range in Mexico.
2.0 Situation Analysis
Ajax is performing well in the markets of the United States and Canada. The product sold by the company is of high quality and performance. Since the firm has already tapped the potential market in the U.S. and Canada, it needs to target expansion in new markets for growth.
2.1 Market Summary
Ajax focuses on selling high quality alarm clocks. It ensures that clocks are manufactured as per designs and standards provided by the company. Countries all over need alarm clocks, and Ajax aims to provide its products to a wider customer base. In the U.S. itself there are many leading brands like Timex, Citizen, Seiko, Memorex, Sanyo, etc. which offer alarm clocks.
2.1.1 Market Demographics
Ajax targets mostly college going students, parents of college going students, working professionals, and gadget freak people. Thus the age bracket for target customers is 18-60 years.
Ajax clocks are priced reasonably, hence low-income, and medium income earners are being targeted as potential customers.
Education is also used as an indicator for Ajax. People in Mexico and other countries in which Ajax has plans to sell its products, the population is relatively less educated as compared to U.S. and Canada. Hence, Ajax would target both, less educated and highly educated people.
2.1.2 Market Needs
There always exists a latent demand for alarm clocks in the market. For firms to serve a market, they must perceive a ...
Ajax Alarms is a medium-sized U.S. firm that sells alarm clocks. It subcontracts the production of its clocks to a Korean firm, which manufactures them based on Ajax designs and specifications and then ships the clocks directly to the Ajax