Therm-Eze
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Therm-eze
Executive Summary
Title: The positioning of a product that is new to a market that is rather quite old.
Date: February 12th, 2008
Type of Summary: O Action O Discussion O Information
Identification of Problem:
Therm-eze, a reusable heating pad, had its distribution rights given to Mr. Mark Tanner who decided recently, after much consideration, that he wanted to manage this innovative product.
Although this product offers something very different and beneficial to customers, there are still many major factors to consider in terms of competition and what market segment to go after.
Major Problem- to develop a successful strategy in market that is currently outdated and unchanged.
Organizational Objectives:
The objective for the Tanner Company is to target the right audience for Therm-eze. Since Mark Tanner bought the rights to the product from the earliest product stage possible, there will be a lot of effort placed in finding out who the target audience will be first, and then developing ways of getting to this audience as much as possible.
Their objective is quite important for the success of this product because they only have one chance of getting it right, this has led to effective research of the suspected target audiences and how each segment viewed the product. As well as constructive insights on the current competition, which in fact are no where near comparable to the benefits offered by Therm-eze.
“With a good marketing program Therm-eze can achieve a market share of up to 50%”
– Richard McKay
Alternatives:
These alternatives have been selected through the research that was accomplished with having focus groups, current “heat treatment” market situation, competitive analysis, demographics of their market and geographic insight (location and quantity for hospitals, retailers, households, etc.)
Taking advantage of the Lab Coat, Halo Effect
By targeting the institutional market, Therm-eze would be able to take advantage of the medical trust as a marketing tactic. This product will work well for the medical sector since they are looking for a product that is cost effective and bears little risk to use.
The financial numbers provided by our company shows to be very optimistic however in assuming that all hospitals need new heating pads, which is false because many clinics require using up their current stock.
An advantage of this alternative would be reaching a wide variety of our market; people with arthritis, sports injuries, etc., and initiating the first use while they are in the hospital and then spark interest