• Posted on February 4, 2021
• Unique Submission Team

Launch of New Product

A new product launch on the AK Enterprises

Part A

In the current scenario, the population is increasing continually, and people are working with the fastest technology. In this environment, the population is growing the pollution with the use of different highly polluted product and vehicle. In the concern of this, the automobile industry is providing the opportunity to produce eco-friendly products to ensure the safety of the environment. AK Enterprises will produce a motor vehicle, which will be the very less polluted product with the brand name of “Eco-fair.”

The product will have uniqueness in the less harmful impact on the pollution with the advanced technological features (Iyengar, Bulte & Valente, 2011). This car will introduce the feature of LED light, hybrid engine, red alert on risk, air filtration system, Inflatable safety belt, sensors etc. The AK Enterprises will also collect the old vehicle of the consumer at the reasonable price for recycle. This is done by the company for propose of the reducing old high polluted vehicle from the market.

The target market for AK “Eco-fair.”

AK Enterprises could target the customer who is tired of the environmental issues and who wants to buy the new vehicle with the change of old.

 

The AK Enterprises is launching the eco – friendly product and will sustain in the market by the use of attractive product strategy. The company has also done the competitive researched to understand about the marketing and revenue of the competitor to compete in this sustainable market (Kahn, 2010). Moreover, the AK Enterprises found feedback of the customers of the competitor and produced the product according to consumer demand to target the customer.

The company will also target the customer who wants to buy the new vehicle and sold out the old and unusable vehicles at the reasonable price. It will recycle the product to make the new product or parts, and this will be a strength of the company in the market.

The new car will available to the customer at the reasonable value and the car will good-looking also to attract the customer. The car will launch as a name of “Eco-fair, ” and the name of the car will introduce like eco – friendly for the environment. The launching of the car will be done by the marketing campaign to promote the product and distribution will be done after launching (Kahn, et al., 2012).

Part B

The promotional strategy of the newly launched product of the AK Enterprises is discussed in this part. The company will promote the brand in the target market by the use of various media tools (Hays, Page & Buhalis, 2013). The several media tools are as follows-

Use of social media- The social media marketing is a digital marketing of the product to the target market. The social media is a valuable and less-costly media for the marketing of a product. The company can able to advertize the product and its benefits related to the environment can introduce to the target market.The social media marketing can be done through the dealership with the Facebook, Tweeter, Instagram, YouTube, Whatsapp, etc.

Sales promotion– The sales promotion is very effective tool for the marketing of the product. The AK Enterprises will get the attention on the target customer by the product promotion and will make successful this promotional campaign. The sales promotion offers the discounts and loyalty card to the customer which helps to make the customer loyal to the brand.

Video marketing– The video marketing is most suitable for the car shoppers.In the video marketing Enterprises makes some advertising video to for promoting the brand in the target market (Geho & Dangelo, 2012). The videos of product cooperate marketing mix and attract the customer by entertainment of live video.

Tradeshow Marketing – Mostly any automobile buyer first wants to take a test drive or research about the care before buying it. The trade shows are useful for this industry to gather the customer by invitation and show the sample with the feature. To introduce the new product, the AK enterprises will spend a lot of time and operate their booth to all customer. This trade-show will show off their product by the use of media.

The point of Purchase- Point of purchase is also known as ‘point of sale’ marketing. In this tool of marketing, the dealers display the product to the target customer and also introduce the feature and profit for the environment by use of this product. The display unit attracts the customer and communicates to self-shopping of the product (Simeon & Buonincontri, 2011).

Part C

AK enterprises will use a cost strategy, which will provide the product at very lover cost. At the time of fixing the price, the company will decide to provide the product at an affordable and reasonable price. This cost leadership strategy will attract a lot of customers and AK enterprises may earn the high profit by further transactions.

The company will look at the cost because some internal and external factors affect the price of the car. AK Enterprises would cover the all costs of production, distribution, and selling in the price strategy (Peter & Donnelly, 2011). It will also consider that the cost reduction will not affect the quality of the product and the material used in the production should improve the higher quality.

The low cost of the product with high quality will greatly attract the customer to enhance the demand. The brand name “Eco-fair” will also attract the customer and show off that the product is eco-friendly for the environment. Also, the Brand “Eco-fair” has an effective pricing strategy with the quality for most of the middle family who thinks about the environment.

Pricing strategy	The cost with the quality leadership strategy may use by the AK enterprises.
Distribution strategy	The company will distribute the product by the use the particular authorized dealer of the company or may use online booking of the product.

The distribution channel used by the AK enterprises will be its authorized dealers that will increase its network to access the customers. The company can sell their vehicle online also by the use of Business to Consumer direct selling (Solomon, 2014).

In this strategy, the AK enterprises will deal with the dealer, and the dealer will handle the paperwork and deliver to the company.The customer negotiates about the product online direct to the company and the dealer gets the fixed percentage on the product sale. The Smart – Order system among the dealer and company can be easily developed by providing the fixed percentage on the customer exchange.

This system provides the product to the customer on the time and company can use the central distribution system. On the other hand, if the customer is not well educated and does not know online booking system then can use the physical showroom of the AK enterprises. The company will locate their showrooms at the middle of the city to target overall customer of the city (Hollensen, 2015). Thus, the distribution strategy of AK enterprises the company will be effective for the target consumers.

References-

Peter, J. P., & Donnelly, J. H. (2011). Marketing management: knowledge and skills: text, analysis, cases, plans. Plano: Business pub., INC.

Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

Iyengar, R., Van den Bulte, C., & Valente, T. W. (2011). Opinion leadership and social contagion in new product diffusion. Marketing Science, 30(2), 195-212.

Kahn, K. B. (2010). New‐Product Forecasting. John Wiley & Sons, Ltd.

Kahn, K. B., Barczak, G., Nicholas, J., Ledwith, A., & Perks, H. (2012). An examination of new product development best practice. Journal of product innovation management, 29(2), 180-192.

Hays, S., Page, S. J., & Buhalis, D. (2013). Social media as a destination marketing tool: its use by national tourism organisations. Current issues in Tourism, 16(3), 211-239.

Geho, P. R., & Dangelo, J. (2012). The evolution of social media as a marketing tool for entrepreneurs. The Entrepreneurial Executive, 17, 61.

Simeon, M. I., & Buonincontri, P. (2011). Cultural event as a territorial marketing tool: The case of the Ravello Festival on the Italian Amalfi Coast. Journal of Hospitality Marketing & Management, 20(3-4), 385-406.