The Beach Carrier Case Study
Background
Mary Ricci wants to launch her new product, the Beach Carrier. Although Mary has an entrepreneurial spirit (creative, optimistic, enthusiastic, flexible and motivated), she lacks capital and is unwilling to sell the pattern to a manufacturer.
Product characteristics
Light-weight
Tear-resistant
Multi-use (beach, picnic, barbecue, concert)
Can be used in the winter, to carry ski gear
Easy to carry
Fade-proof fabric
Dries quickly
Fluorescent or conservative colours, appealing to different demographics and tastes.
Competition
Caddy Sack (Sold at shadeusa.com) – Retails for $16.95
Limited space for beach accessories
Carries only small chair
One-person items only
Wonder Wheeler (4thebeach.com) – Retails for $59.99
Two-wheel cart with oversized wheels
Less than 10 pounds, folds up easily
Carries multiple beach items
Difficult to maneuver on sand
Market Potential
The plan is to introduce the Beach Carrier in the United States and Canada, and the primary target market identified consists of women who use sunscreen. Assuming that beach bags are replaced every three years, one-third of women who use sunscreen will buy a new beach bag this year (19,872,361 is her total potential market).
If Mary Ricci is targeting 1% of the potential market, her goal is to reach 198,734 consumers.
Strategy
Mail-order sales strategy, using regional rollout phases with three-months intervals, achieving national market exposure within 12 months.
Promotion
Novelty and general interest mail-order catalogues and special interest magazines (beachgoers and boat-owners).
SWOT Analysis
STRENGTHS
The Beach Carrier is an attractive product as outlined in the product characteristics
There aren’t too many