Executive Summary
The product under consideration is a smart robotic vacuum cleaner called the Housekeeper from the company ForHome. This device is equipped with an additional function in pet care. It has a separate compartment that is filled with food and water. The owner can control the gadget remotely via a cell phone. The robot vacuum cleaner has a powerful battery, navigation, and other features.
Housekeeper belongs to the expensive segment of robot vacuum cleaners, but their price is fully justified. The main problem with the product is poor recognition, which can be a serious barrier to success. More popular companies can take the idea of Housekeeper developers, and then the device will not be as unique. To avoid this, ForHome needs to launch a quality advertising campaign to give the owners funds at their disposal, which will be used to expand production. In this way, Housekeeper will be able to achieve recognition in the home appliance market, and ForHome will be able to claim the status of a giant company in this area.
Pricing
Many factors determine the price of robot vacuum cleaners. First and foremost, the cost of the components (motor quality and characteristics, navigation type, quantity and types of sensors, and software) is critical. Most of the expense is borne by the components, such as navigation, gyroscope, camera, motor, and sensors (Brusselaers et al. 753).
Second, there is a brand premium, which serves as a marketing component. The price of the robot includes a fraction of the cost of brand advertising, inventing innovative technologies, testing them, and securing patents.
Additional functionality is a third, although no less crucial, consideration. Most of the time, it is an extremely crucial feature that reduces the robot vacuum cleaner’s service to a bare minimum while vastly enhancing cleaning quality (Hoang and Tran). Control through a mobile application, mapping, self-cleaning base, ability to boost suction force on carpets, cleaning schedule programming, and other capabilities, for example, will have to overpay, sometimes not much. This item is especially crucial in the product in question since it serves an additional purpose in pet care.
Technical parameters are the fourth factor influencing pricing. The greater the features, the more expensive the components; thus, the price of the robot will change significantly (Javaid et al. 402). This product has a high power and good quality battery, which influences the pricing.
The kind of cleaning and equipment (dry or dry + wet) is the sixth item on this list. This covers the equipment as well. For example, wet cleaning will need a separate water tank or a nozzle attached to the bottom of the robot. Additional feed and water compartments are necessary for the Housekeeper. Thus, comparing similar units on the market and their characteristics, the price of the robot vacuum cleaner will be $ 600 per unit.
Distribution Strategy
ForHome uses a selective distribution strategy, significantly reducing company costs. It involves selecting from intermediaries those who meet their needs based on the quality of service, qualifications and competence, and sales volume (Murleva 10). This type of distribution is used for pre-selection products, which is ideal for selling appliances (Materljan and Materljan 831). However, there are disadvantages to this type of product distribution – loss of sales (Atefi et al. 724). Under such conditions, competition appears, and the market is not fully covered.
Marketing Communications Strategy
The marketing communications strategy includes several items that affect the company. First, ForHome aims to provide people with high-quality, innovative household appliances that will act as indispensable home helpers. The HouseKeeper vacuum cleaner should become a recognizable product that will be popular worldwide.
The first possible solution to this problem could be allocating money to launch an advertising campaign (Chiu et al. 1612). This action will help ForHome tell the world about itself and attract investors’ attention. The second option is to expand the company, but this will only be possible after increasing the budget.
From this comes the next point related to material resources. For around $500,000, the company can start a good marketing campaign (Păvăloaia et al. 15). However, this amount can vary depending on the owner’s requests and the success of the advertising (Păvăloaia et al. 15). When sales increase. Investors are brought in, ForHome can expand to cover as much of the market as possible. Thus, after these actions, the company will reach its goal and will be able to become on par with the giants of home appliances.
Marketing Research
Housekeeper’s main problem is poor recognition; the company needs to establish its name to do the opposite. This can only be achieved with a quality advertising campaign (Păvăloaia et al. 16). To measure the size of the problem; a survey can be conducted among different groups of people about what they know about the innovative Housekeeper robot vacuum cleaner. After the promotional actions, a follow-up survey can be conducted, and the results can be compared. This is what will help assess the effectiveness of the advertising campaign.
Action Programs
The first action will be to recruit for marketing positions. To achieve all of ForHome’s goals, a highly qualified marketer must develop and oversee all advertising activities (Huang and Rust 38). The next action would be to develop an advertising campaign for the Housekeeper, discuss it, and decide on the selection. Further action will depend on the result of the advertising campaign. If the campaign is successful, the company will need to expand production, look for buildings, and hire staff. If the campaign does not show positive results, then ForHome needs to reconsider the advertising campaign and replace it with a more effective one.
Once ForHome has achieved positive sales results, the company needs to maintain the bar by developing new products and improving the present ones. ForHome must provide quality and reliability so that consumers will continue to use the company’s products. Given how fiercely competitive the market for home appliances is, the company must continually grow and advance (Alzoubi and Gouher, 459). This way, the owners can promote the company by expanding its capabilities and providing unique products.
Budget and Controls
As discussed earlier, a quality advertising campaign would require about $500,000. To monitor the implementation and success of the plan, standards (criteria) must be established by which the progress of marketing plans will be measured (Kanie et al. 1748). This emphasizes the importance of quantitative and temporal certainty of marketing goals, strategies, and activities.
The plan’s success can be measured monthly to track even the smallest changes in the Housekeeper’s sales results. The marketer should also monitor and adjust the plan as it is implemented to maximize effectiveness. Meetings should be held to report on successes and analyze the rise or fall in sales. In the future, the company needs to open a marketing department to promote the Housekeeper and other innovative devices developed by the company.
Works Cited
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