Task: This is an exercise based on the business scenario given below and you require to understand it thoroughly.
Case Scenario:
NeuTech is planning to market disposable devices made from plastic materials in 6 months. This new product line of devices can be used to check water quality, monitor biochemical reactions, screen chemical compounds, conduct human blood analysis, or study fluid behavior (mixing, diffusion, etc.), depending on the thin layer of material coated on the plastic surface and the treatment process prior to the use of devices. NeuTech's devices are designed to replace existing devices fabricated by their competitors that have been in market for years. Several advantages offered by NeuTech's devices include their disposability, a lower production cost (40 - 60% of its competitors' costs), a shorter lead time (i.e., from taking purchase orders to delivering products, which is about 50% of what its competitors need), and a faster processing scheme (i.e., getting the result quicker, which saves 30% of the time). Competitors' devices are not disposable and require tedious solvent-cleaning each time prior to their use. However, NeuTech has several concerns about its new devices:
A) NeuTech is a small company as compared with its competitors, so its marketing force and distribution network are not as strong as those of its competitors. The company is not well known by the industry.
B) NeuTech's devices are based on plastic materials that are quite different from quartz, glass, or silicon used by its competitors. As such, are end users willing to try plastic devices? They may be afraid of any unknown negative impacts that can be caused by NeuTech's devices on their existing systems and facilities.
C) Can end users perceive the value of disposability added by NeuTech's devices? Existing devices, once installed, will stay in the experimental setup until they fail. During the operation, they are cleaned by expensive chemical solutions after each use. NeuTech's device, on the other hand, needs to be removed from the setup after each experiment or task. A new one will then be installed. The used device is simply disposed, without any cleaning.
D) NeuTech believes that it has the best technology in the world and its devices outperform any competing devices in the market. How can all this be demonstrated and used by NeuTech to gain its market share? Often, technology leadership does not lead to market leadership.
E) The three top key players in the industry have occupied 80% of the U.S. market. Can NeuTech compete? What can be done for NeuTech to reach a critical mass to succeed?
Assume you are in charge with marketing NeuTech's devices in the United States. Your task is to develop recommendations for each of the items listed below that will be used to market the devices. You need to explain and provide rationale for your decisions.
Question 1. How would you apply the market segmentation concept in developing a marketing strategy in this case? Based on your analysis, identify at least two segments for targeting. Explain why you selected the segments for targeting.
Question 2. Marketing includes developing customer relationship management (CRM) in order to enhance the value of the product/brand and to build long-term customer relationship. Recommend three CRM actions for customer retention and enhancing the perceived value of the product. Explain your decisions.
Question 3. Recommend an Integrated Marketing Communication (IMC) campaign that involves at least two promotional tools. Also, develop a theme/message for the campaign, and specify any recommended sequence of the promotional activities. Explain your decisions.
Question 4. Configure at least two product distribution channels and logistics to meet the marketing objectives and fit a variety of market environments, utilizing strategies to increase channel cooperation and minimize conflict. Explain your decisions.
Question 5. Develop a pricing strategy for the product to meet the marketing objectives that need first to be defined in your answer, taking into consideration different pricing approaches (this is not to ask the specific product price; it is just the approach for pricing the product). Explain your decisions.
Your answers to the above five questions have to be based on what is discussed in the textbooks used by this course. I will check your report for the APA style of writing.