RV EMR Innovations case
1. Succinctly describe the real product that EMR is attempting to market * Eric Reynolds and Mary Reynolds are a young couple that formed their love over RV’s (recreational vehicles) into a profitable business. In 1995, the Reynolds opened an RV repair business out of their home and by 1999 the business was large enough to allow them to open their own shop in Amana, Iowa. On 2002, Eric Reynolds came up with innovative products that helped or repaired RV deficiencies. They though that one of their products, called the “Lock-Awn” antibillow device for RV patio Awnings, showed great potential for future investments. Thus EMR innovations were developed with the potential Lock-Awn product to market.
2. Prepare your best SWOT analysis of the year on this company
| -Most RVs suffered from design Flaws on patio awnings-Patio awnings are standard equipment on virtually all RV’s -More affordable prices compared to competitors -Their products are better in appearance, ease of installation, and ease of operation than competitors -Targets all segments that own RV’s
| -Does not have a well formulated business or marketing plan -High costs to produce, distribute, and promote their product -EMR is just an idea and not formulated into any type of organization-The owners did not attend college so they lack the necessary knowledge to develop, manufacture, and sell a new product -No marketing nor promotion strategies developed. -Most people solve the patio awning problem themselves
| -Sell their product as a mail order product-Attract individual dealers from the workcampers group -Use an established distributor that already sold RV accessories, such as Camping World (largest RV after-market retailer)-Promote product in the networking groups and forums for the RVs -Provide the product to the customers in the owner’s RV repair Business
| -Would require a good website which are very costly and little knowledge is known of this by the owners -They would have to sell the product cheaper than the regular price and the they could badly install the product giving EMR a bad reputation.-EMR needs a strong sales record to do business with Camping World, which they do not have. -Could not develop enough awareness in regards to the cost of the promotion in these areas -Customers might not want the product added to the service
3. Evaluate the Pros and Cons of the distribution methods that are available to the company
Distribution methods available for EMR’s Lock-Awn product
1) Sell the Lock-Awn as a mail-order product
| - Passes the shipping cost on to the buyer
| - Requires a good website and knowledge about how to get the website highly ranked on search engines, something that the owner do not posses - Design and hosting cost for the website are very pricy ($2000-3,000)
| 2) Attract individual dealers from the workampers group
| -70,000 members, live full time in their RVs and look for business opportunities they could conduct from their RVs
| -Would have to discount 25 percent off the retail price of the product
| 3) established distributor that already sold RV accessories, such as Camping World.
| -Camping World was the largest RV after market retailer in the US
| -EMR needs a strong sales record, which they do not have, in order for Camping World to distribute their product
4. Evaluate the Pros and Cons of the various Marketing tactics that Mary is considering- in detail (will each hit their target market? What kind of real impact can they expect from each, cost/benefit, etc.).
Marketing Tactics: Pros and cons / will hit target market? And real impact A) Advertise in popular RV magazines:
a. Pros: hits their target market directly (motor homes/trailer life) with a 1.5 million circulation of people who read the magazine...
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