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Marketing Final

Introduction: Our sales team, Alexis, Maria, and Rachel, have been approached by the
CMO of our company, REI. The purpose for coming to us was to demonstrate the want
for a new product. The sales team has created a product which will be launched next fall.
Below is the creation, details, and information about the inventive product the REI sales
team has created which is called R.A.M Thermo.
Product idea:
A fall and winter jacket that has built in heaters which have sensors on the outside that
detect the temperature and once it reaches a certain degree the heaters automatically turn
on.
Target Market:
Includes many markets but the specific group this product is directed towards is to people
who are fall and winter sport participants including skiing and snowboarding.
Demographics:

All ages including kids, teenagers, and adults.


Any gender, there is multiple styles for each
Middle to higher income, they are more expensive
Any marital status
Any ethnic background
Any education
Any occupation
Psychographics:

Lifestyle includes being outdoorsy and being adventurous


Like and enjoy the snow and cold weather change
Participate in colder sports such as skiing or snowboarding
Regularly spend time in cold weather
Ski or snowboard on a regular basis, type of jacket they would use daily
Attitude includes like being comfortable, don't want to be cold, like feeling warm
Values include the sports they participate in, health, having quality clothing, long
lasting products, style and trends, self comfort
Opinions include spending money on products that are worth it quality wise, want
name brands, the personal feel is important, want something they can regularly
wear during a winter sport
Behavioral:

Shop mainly for seasonal clothing


Buy higher priced clothing and name brands
Returning shoppers
Want apparel that benefits them
Loyal customers
Appreciate deals
Enjoy saving money
Geographical:

National market
Mainly cold regions
Mountainous regions

4ps:
Product:

Development structure is made to be easy to use, effective, comfortable,


fashionable, helpful, safe, long lasting, and to make a fall/winter sport easier,
unnoticable heaters
Design includes many styles, lots of colors, for both genders, unnoticable heaters
within the inside, sensors on the outside to determine when outside temperature is
between -20 degrees - 75 degrees, charger inside pocket to maintain heat ability,
inside sensors to determine body heat, and controller to adjust manual settings
Features include pockets, a zipper, a hood, the logo, heaters on the inside, a
control to individually adjust heat settings, outside sensors that are disguised as
buttons to determine temperature, inside sensors to determine body heat, and built
in charger to keep heat
Price:

The price is $300.00 considering it is a great quality, long lasting coat that will
make the sport you love easier than ever, which has sensors on it that determine
the outside temperature and activate the inside heaters.
Competitive prices are more expensive just for a regular coat which doesn't
include the heaters inside that focus on the ears, arms, hands, and chest.
Place:

Mountainous regions where skiing and snowboarding is popular


National market
Within colder regions and areas
In a middle to upper class region
Where the temperatures range from -20 degrees - 75 degrees
Promotion:

Side products, advertising on weather, health, fashion, sports, lifetime, etc TV


commercials, billboards in cold regional areas, within stores including sporting,
health, fashion, malls, outlets, REI, popular middle to upper class stores, social
media advertisements, online and application ads, fashion show for fall apparel,
magazines delivered to houses.

SWOT:
Strengths:

Great quality, not flammable, makes winter sport easier, multi-purpose, improves
health, many styles and designs, available to all genders and ages, easy to store on
off seasons, comfortable and light, effective, long lasting, easy to use, strong
public reputation, recognizable brand, extensive data and research on all
components of the product
Weaknesses:

Only sold in certain regions (cold), not sold as frequent in off seasons
Opportunities:

To eventually create something more multi-season, to make other products


available for other sports, to expand outside of the United States, to become a
separate brand, upcoming styles and trends, demand for fall and winter clothing,
more advertising
Threats:

Similar type brands like Columbia and Northface coming out with sport products,
knock off brands, economy, lower prices for the similar apparel

PEST:
Political Issues:

Workers rights, employee laws, environmental laws, animal rights


Economic Factors:

Consumer spending rate is currently high right now, sponsorships, creates many
available jobs, environmentally bad due to excessive resources used, low
unemployment rates, manufacturing cost, shipping cost, price point
Socio-cultural factors:

Maintains styles and trends, focuses on quality and comfort over price, has a large
discretionary income, transparent manufacturing, interactive online presence,
community outreach, local professional work
Technology:

Oriented through the design and construction process, app, online website,
commercials, social media advertisements, full retail store, online updates on
availability and updates

Analysis of Customer Needs:

Need an effective source for warmth while they ski and snowboard
Want a jacket that can benefit their health while they participate in the fall and
winter sport
Customers needed a multi purpose jacket
Need a jacket for both the fall and winter season
They need comfortable, easy to use, and long lasting apparel that benefits them in
various ways, mainly in winter sports.
They need a jacket that will be effective when heating and actually works
Personal usage jacket that is directed towards the customer individually
Need something customized that they really enjoy and want
Can help them improve within their sport because they won't get cold and sick

Consumer Protection Considerations:

The heat of the jacket will only reach 75 degrees max before it automatically
maintains that heat. This temperature is proven to be safe for every person. Was
approved by CPSC.
Materials are non flammable and can withstand any weather conditions and
continue to their full ability. Was approved by CPSC.
Extensive amounts of materials from animals are regulated and under the legal
limit. Was approved by EPA.

Feature and Benefit Analysis:


Various colors, styles, and designs

Fashionable, stylish, and trending jacket, personal

Inside heaters within jacket

Keeps you warm, prevents sickness, improves health, improves sport


improvement

Lightweight, comfortable

Easy to store in off seasons, feels like a regular coat, doesnt affect skiing or
snowboarding ability, still have mobility while doing sport

Unnoticable heaters

Jacket isnt heavy, can be used even when its not cold, doesn't affect skiing or
snowboarding ability

Long lasting material

Only ever have to purchase one, will last forever, doesn't ruin due to weather

Includes zippers, hood, sleves, and pockets

All components have heaters. Heat stays inside jacket and keeps chest warm with
zipper, hood can be used during weather purposes to keep ears warm, pockets
keep hands warm, sleeves keep arms heated

Controler

If you want to change the designated temperature in which it activates you can
control that, turn the jacket on or off, gives it a personal feel

Charger

Inside one of the pockets is a charger that allows your jacket to keep its heat
flowing for 72 hours. To charge the charger you plug it into an outlet for 3 hours.
The charger will beep when the jacket is 1 hour away from running out of battery

Sensors

The outside sensors are disguised and can determine outside temperature
effectively. Inside sensors respond to body heat so jacket only activates when you
are wearing it. The inside sensors detect when your body heat has reached 75
degrees and automatically maintains that heat for safety purposes.

Anticipated Objections:

I think this will effect how I ski or snowboard.

With the jacket you still have full mobility, its light and comfortable so you don't even
notice the heaters there, the heater are effective so its a guarantee you will stay warm the
entire time, and will only improve how you ski or snowboard.

What if the heaters get ruined in the cold weather while I'm doing my winter and
fall sport.

The heaters, sensors, and button are all designed to perform with freezing conditions, the
features will never get ruined and can handle anything that the sport brings.

The product is too expensive.

It is worth it because of the quality, long lasting material, and effectiveness of the
sensors and built in heaters.

I already have something like this.

Thats impossible because we are the first company to have jackets that contain heaters
which are activated by outside temperature regulated sensors.

Last time I was disappointed in one of REI products.

If this problem occurs again we can guarantee a full refund but we will insist on full
customer satisfaction for you personally.

You do not have the color I am looking for.

The wide selection of colors and designs that we do have include neutral colors that go
with everything and a variety of other colors. I can insist that we will find a certain color
or design that will appeal to you.

I will wait until it goes on sale.

Because this product is so popular and modern it is selling very quickly due to all the
customer satisfaction and successfulness of the product, so I recommend buying it now.
Recommended up-selling Strategy:

If you purchase a jacket you get a free lift pass. Normal mountain passes are
usually around $130 a piece. This upscale encourages athletes to purchase a high
quality jacket that will benefit them, while in addition have the free chance to
wear it while skiing or snowboarding because of the lift ticket was included.

Closing Recommendations:

Asking CMO for support


Asking CMO for funding to get started
Asking for approval to put this out into the market tomorrow

Full Purchase Order/Invoice Template:


Company Name: REI

Street Address: 6750 S 228th St


City, State, Zip: Sumner, WA 98032
Phone: 1.800.426.4840
Fax: 1.253.891.2523
PO Number: 1938 Sumner, WA
Vendor Company Name: Sports Authority
Vendor Street Address: 1050 West Hampden Ave
Vendor City, State, Zip: Englewood, Colorado 80110
Vendor Phone: 303.200.5050
Ship To:
Company Name: Sports Authority
Street Address: 1050 West Hampden Ave
City, State, Zip: Englewood, Colorado 80110
Phone: 303.200.5050
Deliver To:
Name: Sports Authority

PO Number

Buyer

Date

Vendor Number

3458

Sports Authority

12/23/15

303.200.5050

Part Number

Description

Quantity

Unit Price

Amount

1233

R.A.M Thermo

300.00

300.00

1234

R.A.M Thermo

300.00

900.00

1235

R.A.M Thermo

300.00

600.000

Statistics:

Logo has red, orange, and yellow colors because those colors symbolize heat and
are colors that viewers are responsive to because of what they represent.
The lowest range the jacket goes to is -20 because the coldest place in the United
States, which is Alaska, averages to being about -17 degrees in the winter so we
wanted to accommodate for every location.
The jacket automatically maintains 75 degrees once it reaches that temperature
because the range for normal human body temperatures is stated as 36.537.5 C
(97.799.5 F).

Year 1 Sales Plan:


Jan

Start promotion strategies to gain REI company popularity


o Advertising on weather, health, fashion, sports, lifetime, etc TV
commercials
o Billboards in all regional areas
o Signs within stores including sporting, health, fashion, malls, outlets
o Social media advertisements on Twitter, Instagram, Snapchat
o Magazines delivered to houses
o Emails sent to all previous customers

Begin design process


o Research popular trends
o Make suitable for all genders
o Colors, patterns, designs
o Style and look
o Materials wanted

Continue promotion strategies


o Focused on athletic clothing
o All REI stores 20% off one week of this month for athletic apparel
o Commercial advertising
o Billboard marketing in all stores and more areas
o Continue social media ds advertisements
o Mail and email weekly monthly updates

Feb

Have components and full jacket created


o
o
o
o
o
o

Create the sensors


Create the heat pads
Create the controller
Create the charger
Create actual jacket
Test all parts for functionality

March

Introduce an REI athletic app


o Different from regular app we already have
o Only promotes athletic clothing
o Ability to receive alerts on new products
o Includes certain deals

Approval and storage


o Have jacket approved
o Store within REI warehouses
o Continue checking on and evaluating storage products

April

Begin loyalty program for all athletes


o Point system based off of purchase on any athletic apparel
o Offered to every customer
o Designed and intended to get skier and snowboarder customer information

Consulting
o Find other companies willing to sell jackets
o Talk with star athletes to consider sponsorships

May

Increase REI jacket popularity


o Make focal point for all websites, social media pages, apps
o Showcase jackets in every store nationwide
o Get customers interested in our jackets

Close deals on all consultations


o Legal work for all sponsoring companies and star power

June

Release information concerning R.A.M Thermo


o Announce a new inventive product will be coming out next month for the
fall and winter season
o Make this known on all social media accounts, website, both apps
o Email all customers with news, TV advertisements
o Send loyalty members information via email and mail delivery

Preparation
o All jackets out of storage
o Fully stocked for all stores in United States
o Packaging ready for selling

July

Begin selling R.A.M Thermo


o Sell in all cold regions within the United States
o Sales online, in REI stores, within other stores
o Starting price of $300.00

Introduce upselling strategy


o Ski lift ticket availability
o For any mountain or ski hill

Aug

Continue selling and selling


o REI focus is mainly on R.A.M Thermo
o All promotion strategies go towards jacket
o Increase the popularity

Introduce side products for purchase with jackets


o Additional promotion strategy
o Water bottles, beanies, chapstick, mirror, tshirts
o Help maintain popularity
o Continue excitement

Customer feedback
o Gain information
o Take surveys
o Get statistics

Sep

Oct

Nov

Expand
o Consult with other companies to carry R.A.M
o Athletic apparel stores
o Name brand, top market stores
o Fall and winter clothing stores
o Ski and snowboard hills
o Get product in more places

Dec

Continue promotion strategies


o Include Christmas sales
o Discounts for holidays
o All regular promotion strategies

Introduce new colors, designs, and styles


o Must pertain to popular trends
o All new ideas
o Nothing we have already