Toro Marketing Plan · 2019. 3. 8. · purchase zero turn and professional series mowers....

transcript

TheToroCompanyMarketingPlan

____________________________________

AustinTruitt

MKT465

Dec.12,2018

Dr.Henson

ExecutiveSummary

ThepurposeofthisreportistodevelopandanalyzeamarketingplanforTheToroCompany(TTC).Usingpastfinancialandmarketinginformation,IwillrepositionTheToroCompanywithintheirindustry.Discussingwhatdoesanddoesnotwork,andhowthesedecisionsaffectthefutureofthecompany.ThisanalysiswillcontainanExternalAnalysis,addressingMacroeconomicsandbuyerbehavior.AninternalAnalysisthatwilldiscussseveralstrategies-includingcorporate,businessandmarketingstrategy.WewilltakealookatthecompaniesfinancialstandingbydivingintoOperationincomeandstockvalue.Thereportwillresultinprovidingstrategicinsightonanalyzedresearchandproduceimprovementsonissuesdiscoveredthroughoutthereport.Toroiscurrentlystrugglingwithacompetitivemarketinalloftheirproductlines.Witharecentlackofinnovation,wemaytakeasignificantfinancialhitifwedonotinvestinbecomingmoreinnovativewithintheirindustry.Ourprofitgrowthiscurrentlyatastandstillalongwithrevenuegrowth.Thisismainlyduetoalackofinnovationintheindustry.Ourlastkeyissueisalackofproductdifferentiation.Wemustfindawaytopenetratethegapsinourtargetmarket’slawncareneedswhileremaininginnovative.Ourtopprioritygoingforwardmustbetoemphasizebecomingmoreinnovativeacrossallproductlines.CompetitorssuchasHusqvarnaarelaunchingbatteryandroboticpoweredlawnmowers;breakingintoanewconsumermarket.Consumersworldwidearebecomingmoreattractedtotheseproductsandcompetitorsaregrowing.Innovatingnewproductswillattractthecustomertomakeanewpurchaseonproductsthathavelonglifeexpectancies.Alongwithinnovation,Toroemphasizescustomerservice.Providingthebestconsumerexperiencecancreatebrandloyaltyandrecognition.Mostimportantly,itcanmakeupforthelackofinnovationTorohasexperiencedoverrecentyears.https://finance.yahoo.com/quote/TTC?p=TTC&.tsrc=fin-srch

SituationalAnalysis

MacroEnvironment

Demographic:Thelawnmaintenanceindustryisprimarilydependentupontwomarketsegments;residentialandprofessional.Theresidentialsegmentincludeshomeandlandownersbetweentheagesof25and55.Theprofessionalmarketincludesalllandscapingcompaniesfrom‘weekendwarriors’tofull-timebusinesses.Landscapingcompaniestendtobeabiggertargetsimplybecausetheypurchaseamultitudeofproductsfromspecificbrands.

Economic:Thelawncareindustryhasvastlygrownandincreasedrevenueforthemajorityofcompaniesacrosstheindustry.Onaverage,professionallawncarecompaniesmake$290,000peryear.Thisnumberhasgrownbyover$70,000inthelastthreeyearsalone.Withmoremoneygoingintotheprofessionalsegment,itprovidescompanieswiththeopportunitytoexpand-resultinginthepurchaseofmoreproducts.Alongwithahighdemandforprofessionalservices,thereisavastincreaseinhomestartsacrossthecountry.Withmorehomesbeingbuiltnationwideandsteadygrowthinhomestarts,thelawncareindustryshouldexpectariseindemandforlawncareproducts.Innovationremainsthekeytoleadingthechargeintothesegrowingmarkets.

https://tradingeconomics.com/united-states/housing-starts

Socio-culture:Socio-culturefactorsplayasignificantroleinlawncarecompaniessuccess,especiallyintheU.S.Americanstendtotakemoreprideintheirlawnsthanothercountries.TheU.Sistheonlycountryintheworldtocelebrate"NationalLawnCareMonth"whichtakesplaceeveryApril.TheAmericanlawnismerelyaculturalartifact.FormanyAmericans,theirlawninstillsasenseofprideandinitiatescompetitionbetweenhomeownersandtheirneighbors.Thistypeofcompetitionincludeshomeownersandprofessionallawncarecompanieswantingthelatestmosteffectiveequipment.Thismeansinnovationmustbeinplacetocompetewithindustrycompetitorstofulfillconsumerdemands.Technology:Technologyisattheforefrontofthelawncareindustry.Theyear2018isstatedtobe"theyearoftheroboticlawnmower."CompaniessuchasHusqvarnahavelaunchedtheAutomowerwhichiscompatiblewithyourmobiledeviceandAmazonsAlexa.Allowinga24/7,365hands-freelawncareservice.TechcompaniesarelaunchingappssuchasLawnLoveenablingconsumerstopickanylawncarecompanyandreceiveaquoteinlessthan2minutes;allwithoutmakingasinglecall.Wemustfindwaystokeepupwiththetechnologicalsurgeintheindustry.Servicesarebecomingeasierandmoreavailableto

consumers,whileothercompaniesinthesectorareleapingadvances,wemustfindournicheintherecentadvancements.https://www.totallandscapecare.com/green-industry-news/lawn-love-feature/

https://www.grandviewresearch.com/industry-analysis/lawn-mowers-marketBuyerBehavior:Likealmostanyotherproduct,consumersmaketheirdecisionforpurchaseoffoftheirneedsandcapabilities.Consumersaretrendingawayfromdealeroutletsandhardwareretailersandshiftingtheirpointofpurchasetoathomecentersandmassretailers.TheHomeDepotaloneaccountedforalmost14%oftotalconsolidatednetsales.Residentialbuyerstypicallypurchasewalk-behindandride-onmowerswhileprofessionalstendtopurchasezeroturnandprofessionalseriesmowers.Residentialconsumersmakeuparound35%ofnetsaleswhileProfessionalsmakeupalmost65%oftotalnetsales.

Industry/MarketAnalysis

Inter-firmRivalry:Thereareseveralmajorcompetitorswithinthelawncareindustry.CompaniessuchasHusqvarnahavereleasedstateoftheartroboticandbatterypoweredproducts.Providingtheconsumerwithmoretimetolivetheirdailylifestyles.JohnDeerehasahigherbrandrecognitionthanToroaswellasmoreproductdifferentiation.HusqvarnahasmoreproductdifferentiationthanbothToroandJohnDeere;meaning,consumers,haveabetterchanceofobtainingbrandloyaltytowardHusqvarnabecausetheyhaveamoreextensiveselectionofproducts.HusqvarnaandJohnDeere’sproductsarealsodramaticallycheaperthanToro’s;creatinganattractionforbothresidentialandprofessionalconsumers.

ThreatsofSubstituteProducts:Theresidentialsegmentistrendingtowardsoutsourcingtheirlawncareneedstoprofessionallandscapingcompanies.Youngdualincomefamilieslivingbusylivesarethemostprobabletooutsourcelawncareneeds.Thismeaning,professionalcompaniescovermoregroundthantheresidentialsegment.Anoutsourcedcompanycanhavethreemowersmowing100yardscomparedtotheresidentialsegmentwhere100mowerswouldmow100yards.Today,peoplevaluethetimetheyspendwithfamilyandfriends.Whenconsumersoutsourcetheirlawncareneeds,theyareessentiallybuyingmorefreetimetodothethingstheyvalue.Roboticlawnmowersarealsotrendingatanincreasingrate,givingconsumersasmuchtimeastheywanttodothethingstheylove.ThreatstoNewEntry:Witharecentuproarforroboticandbattery-poweredproducts,thereisahighthreatforcompanieswithroboticbackgroundstoentertheindustry.CompaniessuchasHRG,ABB,andDensoRoboticsarehighlyadvancedintheroboticsindustrycomparedtolawncarecompanies.Withmoreresourcesandintelligencethesecompaniescanproducemoreadvancedandcheaperroboticlawnproducts.Leavingcompanieswithnopresenceinthebatteryorroboticlawncareindustryinthedust.https://academy.getjobber.comhttps://www.toro.com/en/homeowner/riding-mowershttps://www.husqvarna.com/us/products/zero-turn-mowers/

Strategy

CorporateTheToroCompanyisaworldwideproviderofsolutionsforlandscape,turfmaintenance,iceandsnowmanagement,specialtyconstructionequipmentandirrigation.Torooffersawiderangeofproductsthroughmultipleglobalbrands,helpinggolfcourses,homeowners,rentalcompaniesandagriculturalgrowers.Westrive“tobethemosttrustedleaderinsolutionsfortheoutdoorenvironment.Everyday.Everywhere.”http://www.thetorocompany.com/companyinfo/index.html

BusinessOurbusinessstrategyemphasizesquality,innovation,customerservice,manufacturingandmarketing,andpartnerships.Torostrivestoberesponsivetotrendsthatcanpotentiallyaffectmarketsegmentswhilepursuingtargetedacquisitions.Usinganapproachthataddsvaluewhilekeepinginmindtheirproductsandbrandsthatalreadyexist.Toro'spartnershipswithcorporationsandconsumershavehelpedcreatebrandloyaltyformanyconsumersincreasingrevenue.Customerserviceandinnovationarethetwoprimaryfocusesforthecompany.

MarketingOurmarketingstrategyistotargethomeowners;ages25-65.Homeownersmakeuptheresidentialmarketandallowtheprofessionalsegmenttostayinbusiness.Witharecentlackofinnovation,ourmarketingstrategyistoalsomaintainclearbrandidentificationfortheTorobrandandthecompany'sconsumerbrandsincludingExmark,Hayter,Lawn-BoyandLawnGenie.Toroadvertisestheirresidentialandprofessionalproductsindifferentways.Residentialproductsarebroadcastthroughradio,televisionandtheinternet.Ontheotherhand,professionalproductsaremarketedthroughdirectmailandprintprograms.Inadigitalperspective,thecompaniesmostinteractivesocialplatformisInstagram.Weplaceourcontentfocusonconstructionandprofessionalproducts.Theirsocialmediapresenceislackingcomparedtotheircompetitors.Torocurrentlyhas10,000InstagramfollowerswhileHusqvarnahasalmost70,000.

IncomeStatementAnalysis

https://finance.yahoo.com/quote/TTC?p=TTC&.tsrc=fin-srch

Analysis

TheToroCompaniesperformancehasfluctuatedinthepastyear.Overthelastthreeyears(2016-2018).Grossprofitmarginisnotincreasing,stayingat37%.Revenuegrowthhasonlyincreasedby1%inthepreviousyear,leavingthecompanyatastandstill.ThisispartiallycreditedtothelifeexpectancyanddurabilityofToro'sproducts.Consumersdonotpurchaseanewmowereveryyear.ThestockvalueforTheToroCompanyhasfallenoverthepastthreeyearsduetothecompanieslackofgrowth.Theheightofthestockvalueinthepreviousyearwas$71.96comparedtothecurrentpriceof$58.53.CompetitorssuchasHusqvarnaarebecomingmoreandmoreinnovativeleavingTorowiththesamemarketsegments,relyingonconsumerloyaltyastheirprimarysourceofrevenue.

ProductStrategyProduct(s)

Ourcompanyhasawiderangeofoutdoorlawncare,andlawnmaintenanceproductsandservicesthatareofferedtoconsumers.TherearemultipleproductlinesthatTorohastoofferincluding,residential,professional,agricultural,governmentalandirrigationproducts.Homeownerandprofessionalseriesproductsarethecompaniespremierproductlinescontributingtothemajorityofrevenue.OurproductsaremainlysoldB2Bwhereconsumers(residentialandprofessional)canpurchasethecompany’sproductsfromdealersormassretailers.

TargetMarketOurtargetmarketistargetedtowardstwomarkets;professionalandresidentialhomeowners,ages25-65.Residentialconsumersmakeupformajorityoftheiroverallrevenuethroughmassretailordealerpurchasingchannels.TheHomeDepotmadeupfor14%oftotalsalesalone.Theprofessionalmarketissustainableforthecompanybasedonthefactthattheytendtobuymoreproductsatonce.Theprofessionalsegmentalsomanagestopurchaseproductsmorefrequentlythanresidentialownersbecausetheproductsarebeingputtomoreuse.

CompetitionTherearemanymarketshareleadersinthelawncareindustry,allofwhichareaccountableforanequalamountofspaceintheindustry.OurmostsignificantcompetitorsareJohnDeere,Husqvarna,andStihl.Husqvarnaisthecompany'sprimarycompetitorastheyhaverecentlylaunchedaninnovativeroboticandbatterypoweredproductline.WithTorosolelyproducingmowers,innovationintheresidentialmowerindustrycanbedetrimentalifleftbehind.Wearebehindwhenitcomestoinnovationandlaunchingnewproducts,butthecompanystillmaintainsadominantfigureintheoverallindustry.

https://industrytoday.co.uk/market-research-industry-today

LookingForward:TokeepupwithindustryleaderssuchasHusqvarna,itiscrucialforustoemphasizeinnovation.It'sasimpleadaptandsurviveapproach,butitcanpaysignificantdividendsforthecompany.WemustmakeapresenceintheroboticandbatterypoweredindustrytokeepupwithcompaniessuchasHusqvarna.Also,wemustfindthegapsintheresidentialmarketsegmentbycreatingproductstailoredexplicitlytowardsconsumer’sneeds.Thiswillallowforexpansionintheirdominantmarketsegmentwhilethereiscurrentlyasignificantlackofproductinnovationforthecompany.

PricingStrategyCurrently,weutilizeapriceleadershipstrategyonalmostalloftheirproducts.OftenhavingthesamepriceontheirproductsasHusqvarna.WithHusqvarnabeinganindustryleader,itisevidentthatToroencompassespriceleadership.Ourproductsvaryinprice,basedontheproductandthestyleofmowerbeingpurchasedbutremaininlinewithcompetitorsprices.PsychologicalPricing:Toroutilizespsychologicalpricingveryeffectively.Allofourproductsaresoldwithavalueendingin"99"(ex.$12,299.00).Thiscreatesaneffectonthebuyerspurchasingdecision.Also,Toroutilizespsychologicalpricingagainsttheircompetitorsaswell.Husqvarna'sproductsallendin.95;whileToro'sproductsendin.00.Intheconsumer'seyes,thismakesToro'sproductseemcheaperandcreatesasenseofcredibilityfortheproductandbrand.

CompetitionTorohasmultiple,yetverysimilarcompetitorswhenitcomestothepricingoftheirproducts.JohnDeereisanothermaincompetitorwithsimilarpricing,makingtheindustryverycontestedwhenitcomestohavingastand-outprice.WithToropriceleadingHusqvarna,andJohnDeereclosebehind;resultinginverysimilarpricesonalltheirproductlines.Toromustdosomethingtosetthemselvesapartandcreateapricingstrategythatwillengageconsumersandultimatelyresultinaconfidentpurchasedecision.LookingForward/BundlingStrategy:Forustosetourselvesapart,thereisoneeasyyetrewardingstrategythatwewillneedtoimplementshortly.Bundlingproductstogether,atalowercostisanexcellentwayforconsumerstofeelasiftheyarereceivingadeal.Thisstrategywouldbefocusedontheprofessionalmarketsegment.Lawncareprofessionalsusuallypurchasemultiplemowersandotheroutdoorproducts.Creatingabundlewithvariousoutdoorlawncareproductswillcreateaone-stopshopexperiencefortheconsumer.Bundlingisalsosuitablefortheresidentialsegmentasmanyhomeownersownmultipleoutdoorproducts(mower,leafblower,trimmer,etc.)Bundlingtheseitemsallowstheconsumertofeelasifthey'rereceivingtheproductsatadiscount.Whilebecomingmorespecifiedforyourconsumers,ourcompetitiondoesnotbundletheirproductsonaconsistentbasis,givingToroanopportunitytostandoutamongsttheircompetitors. https://sleequipment.com/toro

Channels,LocationandPlaceStrategy

DistributionChannelsTherearethreemaintypesofdistributionchannelsthatTheToroCompanyutilizes;theyare:

• DealerDistribution-Wedistributeamultitudeofproductstodealersthatarelocatedthroughoutthecountry.ThesedealershostToro'sproductsandselldirectlytotheconsumer.DealersalsoofferservicessuchasmaintenanceonToroproductsa

wellmakingthemafavoritechannelofpurchaseforconsumers.Thereareover150foreignanddomesticdistributorsthatfeedproductdirectlyintodealersacrossthecountry.

• Mass-RetailDistribution-MassretaildistributorsincludestoressuchasTheHomeDepot,Lowe's,andAceHardware.Theseoutletsreceiveproductsfromdistributorsaroundtheglobe.Theyarecrucialtooursuccess;TheHomeDepotaloneaccountsforover13%ofgrosssales.Theresidentialmarketsegmentisdependentuponmassretail

• OnlineDistribution-Currently,weofferasimple,easytousewebsiteforconsumerstopurchasedirectlyfromthecompany.Oncetheconsumergoesthroughthenatural4steppurchasingprocess,theycanhavetheirToroproductsdelivereddirectlytotheirresidentsortheTorodealerclosesttothem.Theseproductscomefromoneofthe40domesticand120foreigndistributorsaroundtheworld.Majorityofonlinesalesarecreditedtotheresidentialmarketsegmentratherthancommercial/agriculture.Wealsohaveadealerlocatorontheonlinepurchasingwebsitethatallowsconsumerstolocateanauthorizeddealerclosesttothemforpurchaseorpickup.

LookingForward:Toromustbecomemoreinnovativeacrossallproductlinesanddistributionchannels.WeneedtoenterretailstoressuchasBrookstoneforroboticproducts.Thiswillcreateanewmarketsegmentresultinginnewconsumerswhileincreasingbrandawarenessforthecompany.MarketingChannelsOurcompanyusesDualDistributiontoreachourconsumers.Withindualdistribution,weutilizePersonalSellingandSellThroughIntermediariesasoursub-marketingchannels;botharecorrelated.ThesechannelsarePersonalSellingandSellingThroughIntermediaries.EachlevelofdistributionhelpsTorodecideonashortorlong-termmarketingplan,allowingustoimproveproductsanddeployproductsindemand.

WithamajorityofourdistributionbeingB2B,ourmostimportanttoolispersonalselling.Personalsellingisknownasface-to-faceselling;thisoccursinalldealerandmassretailoutlets.Withthemajorityofsalescomingfrommass-retailers,itisofutmostimportancetoutilizepersonalsellingeffectively.Personalsellingalsoexpandsbrandawarenessforourconsumers.SellingThroughIntermediariesisanothertermforindirectselling,orsellingtoauthorizeddealersinToro'scase.Thisisthefoundationofsaleswithinthecompanyasdealersmustpurchaseaproductbeforeconsumerscanhaveaccesstomakeapurchase.Torocannotselltheirproductsuntildealers,andmassretailersbuythemforresale.Partnerships:OurmostsignificantpartnershipisSt.Andrewslinks;thehomeofgolffor17yearshashelpedussellourbestinclassproductsaroundtheworld.WearealsopartneredwithFirstTeeandmultiplesponsorchaptersintheircompanythehelpstudentslearnaboutthegameofgolfandcareeropportunitiesintheindustry.EnvironmentalInstituteofGolfhasrecentlypartneredwithTorotofocusonthenaturalenvironmentandpreservingittostrengthenthegameofgolf.OlsonMiddleSchoolpromotesTorowithhumanresourceswhilewesponsorthemfinanciallyandgivesbacktothelocalcommunitybyinteractingwitheachgradelevelthroughin-classexercises.WepartneredwiththeBaseballTomorrowFundtoprovidediscountsonequipmentanddonatenewequipmentannuallytoallowkidstocontinueplayingbaseballandsoftballintheirlocalcommunities.https://www.playsantabarbara.comhttp://californiaconsulting.org/https://www.standrews.com

LookingForward:Wemustpartnerwithmoreprofessionalsportsorganizations.MajorLeagueBaseballwouldbetheprimaryplacetostart.With32professionalteams,andover69millionpeopleattendingMLBgamesperyear,aligningourproductswithteamsthroughoutbaseballwillallowmoreroomforbrandrecognitionandawareness.Potentiallyincreasing

salesandrevenue.Often,fanswillaskhowprobaseballfieldslooksogood;Toroneedstobetheanswerintheireyes.

CommunicationsStrategy

IntroductionTheToroCompanydesigns,manufactures,andmarketsprofessionalturfmaintenanceequipment,services,turfandagriculturalmicro-irrigationsystems,landscapingequipment,andresidentialyardandsnowremovalproducts.Weemphasizeinnovationandqualityinourproducts,marketing,customerservice,andmanufacturing.Westrivetoprovidewell-builtproductsaccompaniedbyanextensiveservicenetwork.KeyIssuesFourmainissuesaresurroundingToro;theseare:

1. RevenueGrowth2. ProfitGrowth3. LackofInnovation4. ProductDifferentiation

MarketingProgram:

• Product(s):Withalackofinnovationacrossallproductlines,wewilllaunchourCleanCutroboticlawnmowerproductline.Therewillbeatotalof4roboticmowersthataremadetotackleyardsofallsizes.Theseriesofroboticmowerswillallowconsumerstohaveahands-freeexperiencewhilecreatingmoretimeforconsumerstodothethingsthatmatterthemosttothem.Withthepurchaseofaroboticmower,consumerswillreceiveafreelawnaccessorytogoalongwiththeirpurchase(trimmer,blower,etc..)

• Channels:Wewilladvertiseourcampaignthroughtelevisionadvertisements,billboards,andsportingeventssuchasMLBandNFLgames.

• Pricing:ThepricethatToroofferswillvarybasedonthemodeloftheroboticmower.TheCleanCutroboticlawnmowerserieswillcostbetween$1,500-$3,500.

CommunicationObjective

TheobjectivefortheupcomingyearistolaunchournewCleanCutcampaign.Thiscampaignshouldraiseinterestandawarenessofournewproductline.ThecampaignwilllaunchinApril2019andlastuntilOctober2019.ThiswillattractmoreofToro'stargetmarketasthesearetheprimemonthsforlawnmaintenanceintheU.S.Ourgoalistodraw15%ofnewconsumerswhileraisingbrandloyaltyinthese7months.

TargetMarket:Ourgoalistotargetconsumersthatarehomeownersbetweentheagesof25-50.Consumersinthisagerangehaveahigherprobabilityofhavingfamilies(specificallychildrenstilllivingathome),full-timejobsandotherweeklyactivities.Allofwhichrequiretimeandtimeawayfromtheirresidence.Havingaroboticlawnmowerwillgiveourtargetmarkettheabilitytofocusontheirjob,familyandotheractivities.Whiletheirlawnremainstobecaredfor"behindthescenes."Message:Wewillportraytoourconsumersthatincomparisontoourcompetition,ourproductswillbemadeofsuperiorpartswhilebeingsoldatalowerprice.ThemessageofthismarketingpromotionisforconsumerstorealizethatTorogenuinelycaresaboutourcustomersdailylifestyles.Themessagetoourconsumerswillbeforthemtoputtheirtrustinourproductswhiledoingthethingsthatmatterthemosttothem.Also,toletourproductsandbranddothehardworkforthem.Establishingthisconnectionandtrustwithconsumerswhilecreatingbrandloyaltyalongwithbrandawareness.Resultinginincreasedrevenueandprofitmarginswhichareourtoptwokeyissues.MediaSelection:OuradwillprimarilybeshownonHGTVaswellassportingchannelssuchasESPNandFox.HGTVwillfitourtargetmarketperfectlyashomeownersbetweentheagesof25-50areHGTVprimaryconsumers.ESPNandFoxwillprojectourpartnershipswithprofessionalsportsteamsandcreatebrandawareness.WewillplaceourbillboardadsintheSouthEast,UnitedStates;specificallyinhighlypopulatedruralareas.

http://www.alticemediasolutions.com/networks/hgtvSchedule:CommercialshowingswillfollowthescheduledtimelinefortheCleanCutcampaign(ApriltoOctober).OurBillboardswillgointoeffectduringthesametimeaswellexcepttheywillstayineffectforafullfiscalyear.CreativeGuidance:ThecommercialthatwillbeplayedonHGTVwillbedifferentfromtheESPNandFoxcommercial.Theywillbothhavebrandinfluencersinthem.Thesecommercialsshouldaimtoincreasebrandawarenessandproductpurchases.

HGTVThecommercialwillshowseveralshotsofthe"middle-class"influencerdoingin-hometaskthroughoutthedaysuchasspendingtimewithfamily,cleaningthehouse,orcooking.Wewanttodramatizetheimportanceandhappinessthatcomesfromspendingtimewithfamilytomakeanemotionalconnectionwiththeconsumer.Whiletheinfluencerisdoinganin-hometask,therewillbesporadicshotsontheroboticmowershownthroughoutthecommercial.Someoftheshotswillshowtheentirefamilyplayingoutsidewilltheroboticmowermowsbetweenthem.Wewanttoemphasizethesafetyoftheroboticmoweraroundchildrenandanimals.Showoffwhattheroboticmoweriscapableofwhilekeepingitrelatabletoourtargetmarket.

ESPN/FOXThecommercialwillshowanMLBplayerwhowillbeourchosenbrandinfluencerwarmingupbeforeagame.Whiletheywarmup,theywilltalkabouthowwelltheplayingserviceandthegrassisthattheyplayon.Asthey'redoingso,theroboticmowerwillcomeuptothemandstop.Themowerandtheinfluencerwillhaveashortconversation;makethisparthumorous.Theconversationshouldincludetheinfluenceraskingtheroboticmowerwhereitcamefrom.Themowerwillcomefromtheinfluencershouse.Portraythatitfollowedtheplayerallthewaytothestadium.Endtheshotwiththeinfluencertalkingabouthowgreatitcutstheiryardaswellasthefield.Budget:Toadvertisetheirnewproducts,ourbudgetwillbe$8,000,000.Thiswillallow$1,000,000fortheproductionofbothcommercialsand$6,000,000toairtheadsonchosennetworks.Therewillbe$1,000,000leftoverincasetheprogramfails.Wewillthenreevaluateandaltertheprogramandcommercials.Measurement:WewillstartadvertisingthecommercialinAprilof2019throughOctoberof2019.Wewillmeasuretheprogressionofsaleseachmonth.Asconsumerspurchaseourproduct,theywillhavetheopportunitytofilloutasurveyonourwebsitewhichwillaskhowtheheardofthenewproduct.Iftheprogramisafail,wewillproduceanewcommercialtoairinthefollowingyear.

MarketingProgram

Program1:UsageTrackingChip

KeyIssue:Twoofourtop4keyissuesarealackofinnovationacrossallproductlinesandproductdifferentiationformourcompetitors.Thismarketingprogramwilladdressbothissues.Description:Theusagetrackingchipisdesignedtohelpconsumertracktheusageandwearontheirproducts.Thechipwillbeplacedontheengineofeveryproductinadesignatedspot.Thechipwilltrackeverythingfromfuelusage,RPM's,oilusage,overheatingandwhenroutinemaintenanceneedstooccur.Itcanalsofollowthelocationoftheproductifitweretobestolen.ThechipwillbecompatiblewiththeToroappontheAppleandGooglestore.Thisallowsconsumers,especiallyourprofessionalmarketsegmenttoincreasethelifetimeoftheirproducts.Objective:Theobjectiveofthenewusagetrackingchipistopenetrateourkeyissuesofthelackofproductinnovationandproductdifferentiation.Ourcompetitorshaven’tlaunchedaproductofitskind.Meaning,thisproductshouldraisebrandawarenessandpotentiallyattracttechnologysavvyconsumersoranewmarketsegment.Theobjectiveofthenewproductistocreateanewmarketsegmentthatwillbeaccountablefor10%oftotalsales,withineightmonths.Thiswilldecreasethenumberofvisitsconsumerstaketohavetheirproductsservicedwhilecreatingasenseoftrustwithourbrand.TargetMarket:Thetargetmarketforthenewusagetrackingchipwillbeamirrorofourcurrenttargetmarketof25-55-year-old'sandprofessionallawncarecompanies.Wewanttheproducttobetailor-madeforourexistingtargetmarketandcurrentconsumers.Product:Thechipwilltrackfromfuelusage,RPM’s,oilusage,overheatingandwhenroutinemaintenanceneedstooccuronallToroproducts.Also,itcantracktheproductifitweretobestolen.ItwillbecompatiblewithAppleandSamsungsmartphones.Theappwillbestraightforwardtouseandwillprovideanexcellentexperienceforconsumers.

Price:Thepriceofthechipwillbe$199.Webelievetheamountisappropriatebecausethechipiscompatiblewithallofourproducts.Thisisaffordableforourmarketsegmentaswell. Channel: We will reach new consumers through our dealer and mass retail outlets. Since personal selling is a significant part of our sales strategy, dealer and retail associates will push the product to consumers. We will also feature the chip in tech-savvy stores such as Brookstone. Communication: We will send out emails to existing consumers as well as paid advertisements on Brookstone's social media page to inform our potential market segment about the product. We will also post the new product to our social media platforms to inform consumers of its capabilities.

Toro Marketing Plan · 2019. 3. 8. · purchase zero turn and professional series mowers....

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