Milsek faces several hurdles to maintain consistent growth, and marketing can help them implement strategic decisions to do so. We outline our preliminary report thusly: * Values and Costs - Product value: Premium product that does the job; Service value: None yet; Personnel value: Customers talk to officers; Brand value: Time-tested, localized; Monetary cost: Higher price; Time cost: High; Energy cost: High; Psychic cost: Old, obsolete * Buying Process - Problem Recognition: Purchase/Ownership of something that needs cleaned; Information Search: Aid by putting products near complimentary items; Alternative Evaluation: Position, distribute and market the value in the differentiation of Milsek through a direct marketing agenda; Purchase decision: Work on distribution channels and pairing products with compliments; Post-Purchase behavior: Maintain and update Customer Service and the way Milsek interacts with the world * Competition - By product, we have outlined the products that compete with Milsek by defining them and analyzing how Milsek measures up * Competitive Advantage - For the company: Locally owned, operated, and manufactured, Time-tested as "micro-firm," Room for growth/Surplus capacity, Company products, close to same formula; For the Individual products: We have outlined the advantages of the individual products by analyzing them with the four P's * Core Capabilities - Makes product that conditions products that have high tangible or intangible value; Able to rebrand similar formula as different products at low setup cost; Small, centralized core * Market Segmentation - Macro: Young professionals, Baby Boomers, Commercial/Industrial, Functionality; Micro: Specifically positioned products and their segment
Values and Costs
Product values for Milsek are cleaning, polishing and preserving wood furniture in one step, while not producing a waxy buildup, such as characteristics identified with competitors like Pledge. Milsek’s products are proudly made in the United States at their Ohio facilities and made with local materials including organic oils. There is currently no service component offered with any of Milsek’s products, and could easily be expanded upon to help boost product value (warranty, 100% satisfaction guarantee, customer service "hotline," etc). Personnel value is leveraged by Milsek that they highlight customers will "most likely speak directly with an officer of the company, rather than a machine.” Testimonials are also employed to create brand value. There is modest brand equity in the northeastern Ohio area as a quality furniture polish, notably with the 50+ age demographic. Product costs for Milsek are about $11 per bottle on average, while moderately lower in retail stores and moderately higher online. This cost range places Milsek’s products in the premium product category. There are bulk discounts when purchasing online, or in larger packaged quantities at warehouse stores. Milsek's products are available online and at limited local retail locations. Since the products are in limited retail locations, there is a higher time and energy cost for customers than there is with competing products. If a customer wants to purchase a Milsek product at a retail location, more time costs are used by the customer to locate a location that stocks the product. And since many stores don’t carry Milsek, dramatic energy costs are created, especially because the customer cannot compare Milsek to other products at that point in time. Most customers will consider only the products available to them at the location for comparison, therefore not even considering Milsek as a viable selection. There appears to be little psychic costs associated with Milsek products, though it is conceivable that younger buyers may feel the product is outdated and inferior since Milsek, as stated on the company’s promotional material, is “The one...