New market positioning for a new product
ACL Clean has been a successful product in the Hampshire and the company expanded into the Essex region Market. However sales were low and public awareness was lacking. The company was using the majority of its funds on the products line extension and little on advertisement and product placement. This is the key factor in the poor sales in Essex because the public isn’t aware of ACL Clean and its benefits. In order to make ACL Clean a more successful and well known product, funds used for the product line extension need to be diverted to advertising in order implement a new positioning strategy in the Essex market. The best way to implement a new positioning strategy would be through the marketing of ACL Clean to first time buyers of cleaning equipment. In order to do this ACL Clean will need to promote sales, advertise, and become established in the public. Background
In January 1990, ABC cleaning Ltd commissioned the cleaning equipment division. The cleaning equipment division expanded more by introducing new products. In the Hampshire area, effective promotion has helped ACL clean become a success. Market awareness is upwards of 80% and brand loyalty is high despite the high price. Advertising is used in the Hampshire for promotion. Ads target general cleaning equipment owners because the market is segmented more according to benefits sought rather than any demographic such as age, gender, or income. The major media is television using commercials with a humorous approach stressing quality and safety. ACL clean then decided to work on developing the product line, as well as branch into the Essex market. These line extension products were also offered in Essex as well as Hampshire, and there was no competition for ACL clean because other companies didn’t enter into this new “unknown” category of cleaning equipment. Over 5 years in the Essex market and sales are still low. The product is...
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