Emr Innovations

Case 3 EMR Innovations Table of Contents Executive summary3 Introduction& problem /issues identification4 EMR’s product and how is attempting to market4 External Analysis6 Opportunities6 RV industry6 RV culture6 Threats7 Competitors7 Analysis and recode current situation8 Internal analysis8 RVs internal weakness and strength8 EMR Innovations internal weakness and strength9 Marketing Audit10 RV’s Current Marketing Strategy10 Main objective10 Main targets10 RV’s Problems11 Alternative Strategies12 Marketing and distribution of the lock- awn12Recommended Strategy13 Executive summary Reynolds are a young couple that transferred their interest over RV’s (recreational vehicles) into a profitable business. Their main objective was to be the â€Å" the supplier of innovative RV products†. Eric Reynolds came up with innovative product called â€Å"Lock-Awn Anti-Billowing Device† , he thought that this product would achieve their goal and repaired RV d eficiencies. They wanted to market their product through their own company †EMR Innovations† , so that they believed that they need to pecify various fields with different point ;product , customer, money , competitor and â€Å"Lock-Awn Anti-Billowing Device† marketing strategies . The report analysis involve the main external and internal factors that would influence their marketing strategy ( SWOT analysis ) . Then analysis the current RV’s strategies and how their plans detail with the marketing variables of product, price, place and promotion ( four Ps of marketing) which are used to attain the marketing plan’s objectives and overall strategies. There are three variables distribution channels ( direct and in direct ) according to their alternative strategy.Than recommended strategies. Introduction& problem /issues identification EMR’s product and how is attempting to market Eric Reynolds and Mary Reynolds are a young couple that transferre d their interest over RV’s (recreational vehicles) into a profitable business. In 1995, the Reynolds started an RV repair business , and by 1999 they open their own shop in Amana, Iowa , since the business became large. On 2002, their business had steadily grown . However, they aspired to be â€Å" the supplier of innovative RV products† . For that reason Eric Reynolds innovate an innovative products that helped or repaired RV deficiencies.They though that this innovative products, which called â€Å"Lock-Awn Anti-Billowing Device† for RV patio Awnings, may provide great potential for future investments. â€Å"Lock-Awn Anti-Billowing Device† would protect the internal lock awning mechanism from tear, and prevent it from billow in the wind, in order to reduce accident and increase the efficiency rate. Lock-Awn Anti-Billowing Device became so effective idea to the Reynolds that they invested $10,000 of their own money to develop a prototype, and they had as sistance and support from an industry research center.Since they wanted to market this product through a new company† EMR Innovations† , they need to analysis different filed with different point . The main five point in the case ( According to Reynolds view point ) are : 1. Product Eric and Mary were confident about their prototype product , they had a sure winner in the Lock-Awn, however they were unsure about it . 2. Customer They had potential customers who had seen the product as positive product, however they were unsure about other customers satisfaction. 3.Money They had no enough budget and financial analyses to entry market. 4. Competitors They afraid of a potential competitor selling same product, which decrease the product successful chance. 5. How they would market â€Å"Lock-Awn Anti-Billowing Device† They had no market analyses ( marketing strategy ) to verify their belief. To address this need, Reynolds need to become with key decisions that relate d to picking the main target markets, the position, pricing, promotion, and distribution channels, and then they need to analyze the financial implications of their decisions.The end result of decision , will be a marketing strategy which will effectively launch the Lock-Awn product and EMR Innovations. External Analysis This analysis consists of analyzing the external environment of the company (competitors, social, technological, regulations, etc. ). The purpose is to identify the key opportunities and threats in the environment. Opportunities RV industry RV vehicles (RVs) are recreational vehicles combining transportation and temporary living quarter for recreation, camping and travel. RVs started early 1900s when nature enthusiasts customized their vehicles.The RV industry flourished after the World War II. In 2000, RV industry consisted of 135 manufacturers and more than 200 suppliers of parts and services. RVs are divided into two categories (motorhomes and towables) and five classes ranging from affordable vehicle to normal people up to luxury one ($ 500,000). In 2002, about 7. 5 million households owned an RV in US and projected to reach 8. 5 million in 2010. This offers great opportunity for EMR innovations to succeed since the RVs exist in considerable number and will grow in the future. RV culture As noticed, RVs are popular and used a lot in US.There is almost one RV in every 12 households according to study conducted by University of Michigan in 2001. The study estimated that there are 30 million RV enthusiasts including households and renters. The retired couples represent the greatest segment of RV enthusiasts since they are free and want to see the rest of the country. They used RVs for traveling since it offers convenience, comfort and freedom to go anywhere and anytime without plan in advance. Some of them are full-time on the road roaming around the country and live in RV. Thus, they want their accommodations to be as comfortable as possible .Most of them are willing to spend their money on accessories like auxiliary fuel tank, power booster and etc. In fact, Richard Dahl, RV owner, manufactured a water filter for RV plumping systems and sold it for $30. Later, he sold 300 more items and established new business for himself. This shows RV owners are willing to accept new ideas which eventually help EMR innovation to succeed. Threats Competitors People created so many types of awning lock to overcome billowing problems. However, most of them are homemade and people reported that they easily damaged.There is one commercial product called â€Å"Awning Saver†. Eric and Merry examined the product and found that it would not be a threat to their product since the awning saver is difficult to operate and looks similar to the homemade one. Therefore, there is no obstacle for the EMR innovation to enter the market. To sum up, the external factors show no threat for EMR innovation to enter the market. Analysis and recode c urrent situation Internal analysis RVs internal weakness and strength Weakness : * Design flaws May decrease RV deficiencies Most RVs suffered from design Flaws on patio awnings, which consider as one of the basic equipment on virtually all RV’s . * The fundamental problem is awning billowing problem in manually operated awnings. Strength * Have flourishing business encourage investment safely * RV consisted of 135 RV manufactures and more than 200 suppliers of component parts and services . * RV had positive economic forecast , although they faced breakdown of RV ownership on 2001. * There was large motivation on their industry and had high rate of enthusiasts customized . In United State , there was a big interest in domestic ground travel * RVers were an adventuresome group have deep experience about what people want at traveling . * Their price was suitable for consumer from all standard of living. * Their prices are more affordable prices compared to competitors . EMR In novations internal weakness and strength Weakness : * Inactive side of the product : * High costs to produce, promote and distribute, their product. * EMR prototype is just an idea and not formulated into any type of industry organization. Most of RV’s people solve the patio awning problem by themselves. * Did not have a well marketing plan * No develop marketing or promotion strategies . * Reynolds Lack of knowledge to develop, sell , and manufacture a new product , since they did not attend college . * No enough money resources . * Have multitasks ( ex: Mary have to care about her 3 children and make bookkeeping for RV repair shop ) . strength : * Have an effective prototype products and ideas * Their products are good in appearance and design . * Easy to install . * Convenient in use and store. ease of operation compared with competitors. * Targets all segment. * Had support and consulting from an industry research center . * Were acquainted with RVs industry . * Had perso nal experience through their repair business. * Their work was flourished and their business had steadily grown . Marketing Audit RV’s Current Marketing Strategy Main objective The main objective of RV’s marketing strategy is to a attract the largest number of people of all ages, by providing their needs ,and satisfy all parties ( company and customer ), in order to achieve the customer values ( benefits and costs ) .As result they try to combined between transportation and temporary living quarters for camping , traveling ,and recreation . Main targets RV’s strategies are clearly directed to the main target , who is well defined , by providing different types of vehicles with different design and suitable prices according to the target level . * Main targets are : * Nature enthusiasts customized * Who have interest in domestic ground travel * Who tend to keep their vehicles for long time RV’s Problems †¢RV’s problems Symptoms problem Accordin g to 2001 survey data, the RV’s face breakdown of RV ownership, illustrated in Exhibit 2. it would be because of the design flaw ) . Current problem Most of RV’s owners focused on â€Å"awning billowing problem â€Å", where the company filed to come out with solution that fix the problem Potential problem May â€Å"awning billowing problem† will affect the economic forecast for the RV industry. This problem may be as opportunity to Reynolds or can be ignore it, since most of RV’s people solve the patio awning problem by themselves. †¢Marketing mix (Four P’s). * Product Vehicles that combined transportation and temporary living quarters for camping , recreation , and travel. It can be used by people of all ages and levels. * Enhance flexibility , convenience and freedom * Characterized by comfort, amenities and enjoyment during travel . * Place its available across United State ( for who have interest in domestic ground travel) * Promotion * Price Prices vary between types of vehicles, related to the options that product provide . Towables| Price | Include folding camping trailers| $5,000 – $10,000 | Truck campers, affixed to the bed or chassis of the truck | $10,500| Conventional travel trailers | $13,000| Fifth wheel trailers | $25,000 – $ 80,000|Motorhomes| Price| Class C | $ 35,000| Most luxurious Class A| Over $500,000| Alternative Strategies Marketing and distribution of the lock- awn Three viable distribution channels: * Mail order product: direct internet traffic to a Lock- Awn Web site. This will cost $ – 2000- $3000. * Workampers Group: indirect because dealers had option to sell the product. A one-time Ad cost $100 and 25% discount off the retail price * Distribution method: indirect because very difficult to get camping world to sell the Lock- Awn since it required strong sale record Advertisement to support selling effortHere are some ways of advertisement suggested by Mary: 1. Adverti se in Popular RV magazines; Motor Home & Trailer Life. Their circulation was 1. 5 million. A 1/3 page black & white 4 times would cost $ 25000. 2. Advertise in RV- related Web sites for minimal or no cost. 3. Develop Promotional brochures detailing for high quality- 4 color the printing cost about $1500 for $10000. 4. Promote and demonstrate the Lock – Awn at RV shows and rallies. Travels cost approximately $ 1800. 5. Ask RV trade publications to evaluate and feature the product in their column. 6. Generate discussion about the product in RV chat rooms. . Use the networking systems like RV clubs and forums to spread the information of the product. Recommended Strategy 1- It's recommended to adopt the free advertisement like RV- related Web sites, Ask RV trade publications by light column, RV clubs and RV chat rooms. 2- After one year they can advertise in costly because they have cash flow and can choose Promote and demonstrate the travels cost approximately $ 1800, Promotion al brochures detailing for high quality- 4 color the printing cost about $1500 for $10000 and Their circulation was 1. 5 million. A 1/3 page black ; white 4 times would cost $ 25000.