Introduction
The success of a new product in the market is a function of the development of a high-quality commodity and marketing it through the appropriate channels. Marketing a product requires a company to identify the target market, the environmental factors affecting its success, and the required marketing mix. A company looking to introduce a new product to the market must first identify the preferences of the target market. This is especially important in the modern world because of the concept of globalization, which has led to the requirement of standardizing products.
This paper looks into the marketing strategies used by a start-up company looking to introduce its new bulb to the premium market. The bulb has been specially designed using the Light-emitting diode (LED) technology. Unlike most bulbs in the market, the new product, going by the name Toshi bulb, does not have any mercury, and it is associated with a lower rate of heat emission. It consumes half as much power as the normal bulbs in the market, and various testing agencies have revealed that it lasts longer than most of the bulbs in the market.
Target Market
The target market for the new product is the premium market. The company has spent eight months on the development of a research program for the design and production of the new brand. The quality of the bulb and its value to the customers is bound to provide justification to give it a high price. The bulb is also associated with a brighter light, which will attract more consumers in the market.
Additionally, it has a stylish design, which will provide the target consumers with a unique bulb that enhances the beauty of their premises. The main aim of targeting the premium segment of the market is because the middle class and the lower class consumers are likely to prefer other inferior and normal products that are more affordable. The market segmentation process for the company assumes a behavioral perspective. It is apparent that the premium segment of the market is associated with individuals that only focus on the quality of the products without much care about the prices.
The Toshi brand is associated with a higher value than most of the products in the market; hence, it has a high chance of harnessing a large market. Since the target market is the initial step of a marketing strategy, it is imperative for the company to conduct a study on the best approaches to attract a profitable market share. It will be helpful to share information about the benefits of the new product. This includes the fact that the bulbs will provide brighter light for a lower cost on power consumption while guaranteeing long-term service. Additionally, the beauty of the design will also add to the value of the product. It is also quite beneficial that the bulbs do not have any harmful compounds, such as the mercury found in most of the bulbs in the market.
External Environment
The LED lighting technology is gradually being adopted by people across the world. The technology is superior to the traditional bulbs that emit more heat, which is an implication that they waste too much power. The current trends in the consumption of LED bulbs reveal that the highest number of consumers is the people with the highest purchasing power, which makes it necessary for the company to target the premium market.
According to the current trends, Toshi will be competing with some of the major LED bulb producers across the globe, including Philips, Panasonic, Osram, Toshiba, and Sharp, among many other brands (Rae, 2013). The competitors have also been developing numerous products for the premium market, as well as other segments of the global market. Since Toshi will be looking to compete in the premium market, it will have to compete on the basis of the quality and value of the products. This implies that it has to develop a brand that is associated with high quality and reliability.
The fact that the LED lighting technology is being adopted at a fast rate across the world means that there will be more entrants into the market. This will lead to more companies targeting the premium market with their superior bulbs. The LED technology in lighting has caught the interest of many consumers in the developed economies because it has the potential to reduce the carbon footprint of the community through the enhancement of power-saving (LED lighting global market trends, 2014). As more companies enter the market, it is also expected that the competition will shift from the quality to the prices of the bulbs. Most producers, including Toshi, will have to enhance the quality of the bulbs by introducing a better technology or lower their prices exponentially to target other segments of the market.
Marketing Mix
The product is a bulb developed through the LED technology, and its main features include an appealing structural design to appeal to the target market. The demand for LED lighting is on the rise across the globe; hence, the product is suited to the current market. The company developed the right product by looking into the needs of the consumers in the premium market. Just like the people in the middle and lower-income brackets, the high-end citizens also like making long-term savings by lowering the rate of consumption of certain products.
The customers will use it to save money and to add to the beauty of their houses. The bulb must be associated with high-quality material and functionality to attract the customers in the premium market. The product will sell under the Toshi brand, which is quite catchy. The packaging will be different colors depending on the color of the light emitted by the bulb to help the consumers choose the bulbs according to their preferences.
The price of a commodity determines the profitability of a company and the ability to develop a loyal consumer base (The marketing mix, 2016). With Toshi, the price will be targeting the premium market; hence, the company will place it at a significantly higher level than most of the light bulbs in the market. This will differentiate Toshi with other inferior and normal product in the market.
Since the product will be marketed globally, the company will be looking to provide a standardized price for all markets across the world. It is essential for the company to use a value-based pricing approach, which facilitates a pricing system that considers the quality of the product (Liozu, Hinterhuber, Boland, & Perelli, 2012). This will enable Toshi to grab a loyal market because the consumers will be satisfied with the value and its price.
The company will have to develop an extensive distribution channel through partnerships with retailing companies across the world (Rahmani, Emamisaleh, & Yadegari, 2015). The partners should particularly be situated in the urban areas within the developed economies because the particular markets are associated with more people willing to purchase premium products. The company should use a push method to sell the product by ensuring that all premium electronics stores stock the bulbs. The company may also look into developing Toshi stores in various mega-malls in the emerging markets. Additionally, the company should ensure that it develops an online store and a distribution plan that facilitates the easier delivery of the orders from the e-commerce platform.
Promoting a brand is one of the most important elements of a marketing mix (Paul & Bihani, 2014). Promoting the product entails the application of various marketing strategies to create awareness of the existence of the product. Toshi is targeting the premium market, television advertisements, print adverts in magazines targeting the high-end consumers, and conducting promotions in retail stores through the word-of-mouth approach and giving clients free samples of the product.
Summary
The company’s effort to provide a high-quality product that is associated with increased value to the consumers will enhance the chances of success in the global market. Not only is the market targeting approach relevant to the trends in demand for premium light bulbs, but the marketing mix is also appropriate for harnessing a large market share, especially in the developed markets. Toshi is bound to revolutionize the lighting industry across the world with a product that meets the needs of the society in energy conservation.
References
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Liozu, S. M., Hinterhuber, A., Boland, R., & Perelli, S. (2012). The conceptualization of value-based pricing in industrial firms. Journal of Revenue and Pricing Management, 11(1), 12-34.
Paul, T., & Bihani, P. (2014). Expectation based customer oriented marketing mix-a conceptual framework. International Journal of Research and Development-A Management Review (IJRDMR), 3(1), 53-60.
Rae, R. (2013). PIDA’s unveils top 10 LED lighting manufacturers list. Web.
Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality function deployment and new product development with a focus on marketing mix 4P model. Asian Journal of Research in Marketing, 4(2), 98-108.
The marketing mix. (2016). Web.