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Marketing Communications and Bestbuy document sample
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Clutter-Free Electric
Surge Protector
Mr. S.P.A.C.C.
Surge Protector and Cord Container
Product: A surge protector encased in a
rectangular, plastic box
•Conceals unsightly electrical plugs and a mess of various
electrical cords
•Cords are neatly organized and stored out of sight inside the
box
By Powerware
Target Market
•Surveys were conducted to determine the appropriate target
market for the product
•Target markets: Men with incomes between $50,000 and $74,999
Women with incomes above $75,000
•The Metrolina region will serve as a test market for the surge
protectors
By Powerware
Brand Name
• Chosen from “Name This Product”
contest winner
– Over 45 entries submitted from Best Buy Employees
– Contest Winner received $1000 from Powerware
– Helped promote product awareness & word-of-mouth marketing prior to
product release
• Catchy & fun slogan
• Easily describes product & its features
By Powerware
Contest Ad
ATTENTION ALL BEST BUY EMPLOYEES!!!
If you can create a brand name for this new
Surge Protector,
Powerware will pay you $1000.
By Powerware YES!! IT’S JUST THAT EASY!!!
“Name This Product” Contest Rules
1. Brand name must incorporate all of the important
product features:
• Easily stores unsightly electric cords
• Saves space
• Enhances safety
2. Email submissions must be received by March 1, 2008
(prior to the May 1, 2008 product release date).
Emails should be addressed to
newsurgeprotector@powerware.org
3. Only Best Buy employees are eligible to participate.
Packaging & Mock-Up
Product Packaging Product Mock-Up
MR. S.P.A.C.C.
Surge Protector and
Cord Container
By Powerware By Powerware
Some assembly required
Pricing Strategy
• Research: What is the cost of a basic surge
protector? Between $11.99 and $20.00.
• What is most of our target market willing to
pay? $1.00 to $5.00 more than price of basic
surge protector.
• Our product includes more features than the
basic surge protector.
• Final price to consumer: $22.99
Pricing Schedule
Retail Selling Price $22.99
Retail Markup % 35%
Retail Cost % 65%
Retail Cost $14.94
Wholesale Selling Price N/A
Wholesale Markup % N/A
Wholesale Cost % N/A
Wholesale Cost N/A
Manufacturer Selling Price $14.94
Manufacturer Markup % 57%
Manufacturer Cost % 43%
Manufacturer Cost $6.47
Sales Forecast
Six Month Sales forecast for
Mr. S.P.A.C.C.
Gastonia, NC Store 364
Rock Hill, SC Store 364
Monroe, NC Store 364
Charlotte, NC Store #1 364
Charlotte, NC Store #2 364
Charlotte, NC Store #3 364
Charlotte, NC Store #4 364
Mooresville, NC Store 364
Small Business Sales 1000
Total Sales 3,912
Discounts
• A discount of $3.00 will be available to
customers who purchase fifty or more units at
once online.
Break-Even Analysis
Break-Even Point
Contribution margin $8.47
Fixed Cost:
Rent $10,000
Utilities 7,200
Supplies 1,000
Insurance 750
Wages 26,000
Promotions 49,850
Total Fixed Cost $94,800
Break-Even in Units 11,193
Channel Strategy
Consumers
• Exclusive Distribution to Best Buy
• 90% said they would go to Best Buy to
purchase a surge protector
Channel Strategy
Best Buy
• Has many locations in the Charlotte Metro
Area
• Known for carrying products of high quality
• Build a relationship with top retailer of
electronics
• Build brand recognition
• The product can be sold with electronics
Channel Strategy
Business to Business
• Online purchases from www.mrspacc.com
• Buy at discount prices for bulk purchases
• To build B2B relationships with large and
small business in the Charlotte Metro Area
Promotional Objectives
Create Awareness
The first step is to make members of our targeted market aware that there’s a new
type of surge protector on the market. We would accomplish this through simple but
repetitive advertising in local newspapers, on television, and on local radio stations.
Inform the market
Our next step would be to provide prospective users with knowledge and information
about the benefits of our new product and what it has to offer in relation to the old
types of surge protectors and cord organizers.
Create Desire
The next task at hand is to create desire for the product and convince at least some
portion of the target market that our new product is better than others.
Communications and ads at this point become flashier and reinforce how easy life is
with “Mr. SPACC” around.
Encourage Purchase and Trial
How will consumers know if Mr. SPACC really does make life easier? Try it.
Marketing communications include television commercials and infomercials illustrating
just how simpler things are when one uses the new product.
By Powerware
Promotional Strategy
• Coupon Offering increases the chances that customers will buy the product and gets their
attention. Maybe $22.99 seems a bit expensive for some customers, but with a $3 off
coupon, they feel like they are getting a deal when purchasing the new surge protector.
• Radio Advertising – Marketers can change commercials quickly, often on the spot by an
announcer and a recording engineer. Radio ads are low cost and give advertisers the ability
to seek very specific target markets.
• Newspaper Inserts /Newspaper Ad – Newspapers are a great medium for local advertising
and for events like store sales that require a quick response. Also, most newspapers also
publish their ads online as well as in print. Therefore, by placing newspaper ads we can
reach consumers through both print and online media.
By Powerware
Promotional Strategy
• Television Commercial gives us the ability to reach a lot of people. However, we can buy
cable, satellite, or local television ad space for a lower cost and reach specific market by
channel or television network. Television commercials allow us to be extremely creative
with ads. We can demonstrate the product in use. Also, the message tends to have a higher
impact because of the use of both sight and sound at the same time.
• Brochures are a great way to get information about the product to the consumers. It’s
flexible in that it can be distributed in many ways. For example, we plan to hand out
brochures during our “Tent Event” outside the Best Buy Stores in the Metrolina area. Also,
brochures will be available at the Mr. S.P.A.C.C. displays inside the stores.
• Buttons or pins for Best Buy Sales Associates to wear is part of a great push strategy. We
hope that all of the store’s associates will mention our new product, especially since it is
being sold exclusively at Best Buy stores during the first six months of its release.
Promotional Budget
Webpage $500
Radio Ad $31,200
Television Commercial $450
In-Store Display $2,400
Newspaper Insert $3,250
Coupon $1,800
Brochure $8,000
Product Showcase $1,000
Contest $1,000
Sales Buttons $250
Total Promotional Budget $49,850
Media Schedule
Media May June July Aug. Sept. Oct.
Television
Radio
Coupon
Store Display
Product Showcase
Newspaper Ad/Insert
Web Page
Brochure
Sales Buttons
In-Store
Display Board
Web Site
• Provides information for customers
• Has a page to show the uses in the home
• Has a page to show the uses in the office
• Allows for Business to purchase product in
bulk
• www.mrspacc.com
Newspaper
Insert
Product Showcase
• Tent & table showcase will visit each Best Buy
location
– Large and colorful tent and displays attracts customer attention
– Showcase is highly mobile; each Best Buy store will have a scheduled
showcase within the product release month
• Product demos made available for public
viewing
– Gives customers a chance to see product features and its advantages
• Brochures, Coupons, and Other Product
Information
– Offered to each Best Buy customer upon store entry
By Powerware
Mr. S.P.A.C.C.
(Surge Protector And Cord Container)
BENEFITS INCLUDE:
Extra storage allows for easy, neat storage of extra cords!
Sleek design allows for easy storage and the unit can even
be attached to a desk!
Offers safety and convenience that no other surge protector
on the market can offer!
Purchase now for only $22.99!
Exclusively at Best Buy!
Remember: Use Mr. S.P.A.C.C. &
Don’t Stress the Mess!
Brochure
Front Back
Mr. S.P.A.C.C.
(Surge Protector And Cord Container) THE BENEFITS OF MR. S.P.A.C.C. INCLUDE:
Do you often find yourself tripping over extra Extra storage allows for easy, neat storage of extra
cords or getting your feet tangled in the cords cords!
beneath your desk? Well, Mr. S.P.A.C.C. is a
surge protector that can eliminate all of those Sleek design allows for easy storage and the unit
problems! You will be impressed with the can even be attached to a desk!
convenience and safety that Mr. S.P.A.C.C. can
bring to your home or office! Offers safety and convenience that no other surge
protector on the market can offer!
Mr. S.P.A.C.C. can improve the area around your
computer and entertainment center.
Frees up room for additional living space.
By Powerware
Purchase now for MR. S.P.A.C.C. IS AVAILABLE EXCLUSIVELY AT
only $22.99! BEST BUY. VISIT YOUR LOCAL BEST BUY OR
WWW.BESTBUY.COM TO PURCHASE YOUR
OWN MR. S.P.A.C.C.
Coupon
Mr. S.P.A.C.C.
Surge Protector and Cord Container
SAVE With Your Purchase
of a Mr. S.P.A.C.C.
$2.00 Surge Protector
Expires 12/31/08
Radio Advertising Schedule
Charlotte Area Cost for AM Number of Number Total
Radio Station 30 second spot Ads per Week of Weeks Cost
WPEG (97.9 FM) $185 5 13 $12,025
WRFX (99.7 FM) $150 5 13 $9,750
WBT (1110 AM) $145 5 13 $9,425
Total Radio Budget $31,200
