Trap-Ease America: the Big Cheese of Mousetraps
Case: Trap-Ease America: The Big Cheese of Mousetraps
Product: Variety, quality, design, features, brand, packing, services, warranties, returns.
Price: List price, discounts, allowances, payment period, credit terms.
Promotion: Sales promotion, advertising, sales force, public relations, and direct marketing.
Place: Channels, coverage, assortments, locations, inventory, transport.
Choose de value: STP: Segmentation, Targeting, and Positioning. The marketing staff must segment the market, select the appropriate market target, and develop the offering’s value positioning.
Provide the value: Product development, service development, pricing, sourcing making, distributing.
Communicate the value: Sales force, sales promotion, and advertising.
Strategy Formulation: Overall cost leadership, differentiation, and focus.
Advantages: Consumers can use safely and easily with no risk, and it poised no injury or poising.
Target Market: Women
Distribution: Direct through national grocery, hardware, and drug chains (Safeway, Kmart…).
Pricing: $0.99 – Suggested Retail Price $2.49 (2 unit) – Cost $0.392 – Retail net revenue $0.75.
Price Positioning: 5 to 10 times more expensive
Sales expenses: $60,000 ($50K for travel, and sales calls - $10K advertising).
Advertising: Good Housekeeping Magazine.
Sales Forecast: 5 millions of units - Current Sales: Several hundred thousand.
Budget: $250,000 for fixed costs.
General Marketing Strategy: Weak, wide, focus on women, without a proper segmentation.
Product: Good, innovative, easy to use, advantageous, but unknown for the public.
Price: Confusing, small margin for volume sales (revenue 0.99 for 2 units, Net revenue only $0.10 p/unit), even with high final price (5 to 10 times than standard traps).
Promotion: Good help from the prizes and awards but it is not still enough for increase the sales. We don’t know if the target market watch or read these materials. Unbalance of fixed costs and marketing costs. Only $10K for advertising.
Place: Distribution only through national grocery, hardware, and drug chains could be inefficient in certain situations depending on its target marketing.
p.s. Sales Forecast: We don’t know the basis from these numbers (5 million of units).
Initial Research: Focus on market size, segmentation, target, consumers’ habit, and main competitors.
General Marketing Strategy: Differentiation. Focus on women, middle and upper class, familiar income above $3,000.00. This public will probably offer less price resistance, and they will afford pay several times more for the product.
Sales Forecast: Replan it based on new market numbers.
Product: The company needs to show clearly all advantages (safely and easily to use, with no injury or poising risk for users) to its public.
Price: Increase the suggested retail price to $2.79 (2 units). Increase the price to $1.29. Keep discounts to reach a Retail Net Revenue 0.75. Decrease discounts to middlemen and wholesalers.
Promotion: Rebalance fixed and marketing costs. $200,000 and $110,000. New Marketing costs use as following: $30K to travels and calls, $40K to advertising (correct target market), and $40K to increase the sales force and manager distribution channels.
Place: Extend distribution through middlemen and wholesalers. Keep distribution through national grocery, hardware, and drug chains.
A. Has Martha identified the best target market for Trap-Ease? Why or why not? What other market segments might the firm target? Why?
Answer: No because she needs to understand better the market and choose a market segment to focus, not only women (so wide). She also can focus on business market, such as restaurants, hotels, and food industry.
B. Who are Trap-Ease’s...
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