20 Apr For this third assignment, please provide at least a 500-word of your Placement Strategy for selling your product. ?? Based on your first and second papers,
For this third assignment, please provide at least a 500-word of your Placement Strategy for selling your product.
Based on your first and second papers, determine how final products are distributed, from manufacturer to retail, local to around the country, and even worldwide. Where will you be selling your products? How will you be selling your products? How will the products get to the customers, including shipping, port inspections, transportation, store placement, shelf placement, and even product displays within the stores or websites?
What processes are involved in securing, packaging, and storing the products for shipping, warehousing, retail shelving, and distribution?
Identify if there are any challenges associated with this step in the process, any advantages that the companies may have with logistics, and how much competition is in the market (like a grocery store, is the competitor's product right next to your product on the shelf).
Remember to include innovations being utilized or tested, such as new ways to distribute products or how products are sold online and mobile.
The second part of this marketing paper is the placement of where you will have your advertisements. TV, Radio, Billboards, Websites, and the Virtual Environment have different audiences. Ensure you explain why you are utilizing that mode of delivery for marketing. Remember to list the frequency, scope, and scale of this marketing, which connects with your second paper since all these factors will increase the cost of advertising.
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SmartGrip: Adaptive Ergonomic Kitchen Utensils
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SmartGrip: Adaptive Ergonomic Kitchen Utensils
Product Overview
SmartGrip is a modernized ergonomic kitchen utensil made for persons suffering from conditions such as grip fatigue, arthritis, or lack of hand mobility (Mobility Shop Direct, 2023). SmartGrip is different from traditional adaptive utensils as it comprises a pressure-sensitive handle. These handles dynamically modify the users' grip strength in real-time, which is critical to boosting comfort and decreasing stress. The innovation is essential as individuals can prepare food in an accessible way, particularly for the aged and those with disabilities.
Product Plan
The utensil will be made from smart sensor technology and food-safe silicone. Production will happen in a specialized manufacturing facility working in joint with suppliers of adaptive technology. A quality team will be responsible for supervising and automating the assembly process. The final products will be channeled via specialty kitchen stores, online retailers, and healthcare suppliers.
Product Design
SmartGrip will be available in several options and sizes, such as forks, knives, and spoons in the market. Besides, these kitchen utensils will consist of ergonomic and non-slip silicone grips. In addition, the utensil will feature built-in smart sensors that automatically regulate handle flexibility depending on the grip strength of the user. They will also include extra add-ons like detachable wrist straps to add additional support and a charging dock for sensor maintenance.
The Chart for the Key Features
|
Feature |
Description |
|
Non-Slip Silicone Coating |
The coating ensures a secure hold, even when having a weak grip strength |
|
Smart Adaptive Grip |
The handles are pressure-sensitive where they adjust in real-time |
|
Lightweight and durable |
It minimizes hand fatigue and maintaining longevity |
|
Rechargeable Sensors |
Offers long-lasting usability with wireless charging |
Target Market
The SmartGrip is mainly targeting arthritis patients, elderly people, and caregivers. The healthcare professionals such as occupational therapists will advocate for this product due to the benefits that it brings.
An image of Weighted Bendable Stainless Steel Cutlery (Mobility Shop Direct, 2023)
Usage and Maintenance
The individuals will be griping the utensil normally. After griping the utensil, the SmartGrip will be then adjusting itself automatically. On the other hand, it is also easy to maintain since the person will require to wipe it with a damp cloth and recharge it weekly.
Innovation and Sustainability
SmartGrip will promote sustainable packaging since it will incorporate more than 50% of the recycled silicone. Moreover, it embraces innovation, and in future, it is likely to include developments such as AI-powered customization based on grip history.
References
Mobility Shop Direct. (2023, July 16). Maximise your quality of life with ergonomic cutlery for Arthritic users. https://mobilityshopdirect.com.au/blogs/news/maximise-your-quality-of-life-with-ergonomic-cutlery-for-arthritic-users?srsltid=AfmBOoozWabpCzc2MyixFcpwQvn7Pk-E-q0sJjWD7Gb-Jau_O1DXvs74
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SmartGrip Cost Analysis
1. Cost Analysis
Raw Materials & Manufacturing Costs (per unit)
Significant costs will be involved when manufacturing every unit of SmartGrip utensils. For instance, food-safe silicon will be one of the components that will be utilized to offer a non-slip ergonomic grip. The use of smart sensor technology will assist in adjusting handle flexibility. The rechargeable battery will power the smart sensors, while the non-slip ergonomics will bolster user comfort. Manufacturing of these utensils would also demand labor, leading to substantial employee wages and facility costs. Finally, the cost of quality control will be considered to make sure every unit meets performance and safety standards.
Cost Per Unit Chart
Additional Costs (per unit)
Once the manufacturing phase is completed, additional costs will be incurred in making the products available to customers. For instance, packaging and branding costs must be considered to help achieve eco-friendly packaging and brand printing. The production will involve warehousing and storage costs as these final products must be stored in warehouses. The cost of shipping and distribution must be considered since these SmartGrip utensils will be channeled to retail stores and clients. The products will also incur the advertising cost per unit to spread awareness of the availability of SmartGrip utensils in the market.
Break-Even Analysis
The total cost to produce one unit of SmartGrip will be $25 for manufacturing and $15 additional costs, where the total costs will be $40. The break-even price must therefore be $40 for every unit to avoid incurring losses.
2. Pricing Strategy
Setting the Retail Price
The record profitability, the price for SmartGrip should be more than the break-even price. The suggested retail price (SRP), retail profit margin, and manufacturer profit per unit will be $59.99, 30% (Retail stores buy for $45 and sell at $59.99), and $19.99 ($59.99-$40.00), respectively.
Strategic Pricing Models
To maximize sales and attract more customers, one of the practical strategies would be the use of bundle pricing that entails buying 2 SmartGrip utensils for $99.99 rather than $119.98 and motivating bulk purchases and surge revenue. Another strategy would be a subscription model that enables customers to pay $10 per month for maintenance and replacements. This model would also offer recurring revenue and foster customer retention. The final pricing strategy will include offering discounts and coupons. Buyers will receive a 10% discount on their first-time purchase.
3. Marketing Budget and Strategy
Annual Marketing Budget
The marketing of products plays a crucial role in fostering product visibility, so an allocation of $500,000 annually is needed to facilitate promotions. One category for marketing promotion is social media ads on TikTok, Instagram, and Facebook to target online users via paid ads. Furthermore, Google Ads and SEO optimization will be considered to enhance search ranking and Google ad visibility. Other costs would be incurred for collaboration with influencers to promote SmartGrip commodities. Conversely, it would be vital to consider television and online video ads, which would include significant expenses for YouTube and commercial ads. Public events and relations will be allocated significant funds to facilitate product demos, trade shows, and healthcare conferences. The final expenses associated with marketing would include salaries for social media managers and teams, especially content creators.
4. Sales and Profit Projections
We are anticipating that sales and awareness will grow. For Year 1 the marketing efforts will increase brand recognition which will cause the number of sales to be 50,000 and the profit to be $499,500. On the second year, the sales are expected to double because brand awareness will grow. The profit for this year will be $1,249,000. On the other hand, the third year will experience expanded partnerships and bulk order. This process will cause the sales to shift to 200,000 and the profit to be $2,998,000 as shown below.
Microsoft_Excel_Worksheet2.xlsx
Chart1
Cost per Unit ($)
Cost per Unit ($)
Food-safe silicone Smart sensor technology Non-slip ergonomic handle Rechargeable battery Assembly & labor Quality control Total Manufacturing Cost 2 7 4 4 5 3 25
Manufacturing Costs
| Component | Cost per Unit ($) |
| Food-safe silicone | 2 |
| Smart sensor technology | 7 |
| Non-slip ergonomic handle | 4 |
| Rechargeable battery | 4 |
| Assembly & labor | 5 |
| Quality control | 3 |
| Total Manufacturing Cost | 25 |
Cost per Unit ($)
Cost per Unit ($)
Food-safe silicone Smart sensor technology Non-slip ergonomic handle Rechargeable battery Assembly & labor Quality control Total Manufacturing Cost 2 7 4 4 5 3 25
Additional Costs
| Cost Category | Cost per Unit ($) |
| Packaging & branding | 3 |
| Shipping & distribution | 5 |
| Warehousing & storage | 2 |
| Marketing allocation (per unit) | 5 |
| Total Additional Costs | 15 |
Marketing Budget
| Marketing Category | Annual Budget ($) |
| TV & online video ads | 140000 |
| Social media ads | 110000 |
| Social media manager salary & team | 80000 |
| Influencer partnerships | 70000 |
| Google Ads & SEO | 60000 |
| Public relations & events | 40000 |
| Total Marketing Budget | 500000 |
Sales Projections
| Year | Units Sold | Total Cost per Unit ($) | Total Production Cost ($) | Marketing Cost ($) | Revenue ($) | Profit ($) |
| Year 1 | 50000 | 40 | 2000000 | 500000 | 2999500 | 499500 |
| Year 2 | 100000 | 40 | 4000000 | 750000 | 5999000 | 1249000 |
| Year 3 | 200000 | 40 | 8000000 | 1000000 | 11998000 | 2998000 |
Sales and Profit Projections in The Next Three Years
Revenue ($) 2999500 5999000 11998000 Profit ($) 499500 1249000 2998000
image3.emf
Microsoft_Excel_Worksheet3.xlsx
Manufacturing Costs
| Component | Cost per Unit ($) |
| Food-safe silicone | 2 |
| Smart sensor technology | 7 |
| Non-slip ergonomic handle | 4 |
| Rechargeable battery | 4 |
| Assembly & labor | 5 |
| Quality control | 3 |
| Total Manufacturing Cost | 25 |
Cost per Unit ($)
Cost per Unit ($)
Food-safe silicone Smart sensor technology Non-slip ergonomic handle Rechargeable battery Assembly & labor Quality control Total Manufacturing Cost 2 7 4 4 5 3 25
Additional Costs
| Cost Category | Cost per Unit ($) |
| Packaging & branding | 3 |
| Shipping & distribution | 5 |
| Warehousing & storage | 2 |
| Marketing allocation (per unit) | 5 |
| Total Additional Costs | 15 |
Marketing Budget
| Marketing Category | Annual Budget ($) |
| TV & online video ads | 140000 |
| Social media ads | 110000 |
| Social media manager salary & team | 80000 |
| Influencer partnerships | 70000 |
| Google Ads & SEO | 60000 |
| Public relations & events | 40000 |
| Total Marketing Budget | 500000 |
Sales Projections
| Year | Units Sold | Total Cost per Unit ($) | Total Production Cost ($) | Marketing Cost ($) | Revenue ($) | Profit ($) |
| Year 1 | 50000 | 40 | 2000000 | 500000 | 2999500 | 499500 |
| Year 2 | 100000 | 40 | 4000000 | 750000 | 5999000 | 1249000 |
| Year 3 | 200000 | 40 | 8000000 | 1000000 | 11998000 | 2998000 |
Sales and Profit Projections in The Next Three Years
Revenue ($) 2999500 5999000 11998000 Profit ($) 499500 1249000 2998000
image4.emf
Microsoft_Excel_Worksheet4.xlsx
Manufacturing Costs
| Component | Cost per Unit ($) |
| Food-safe silicone | 2 |
| Smart sensor technology | 7 |
| Non-slip ergonomic handle | 4 |
| Rechargeable battery | 4 |
| Assembly & labor | 5 |
| Quality control | 3 |
| Total Manufacturing Cost | 25 |
Cost per Unit ($)
Cost per Unit ($)
Food-safe silicone Smart sensor technology Non-slip ergonomic handle Rechargeable battery Assembly & labor Quality control Total Manufacturing Cost 2 7 4 4 5 3 25
Additional Costs
| Cost Category | Cost per Unit ($) |
| Packaging & branding | 3 |
| Shipping & distribution | 5 |
| Warehousing & storage | 2 |
| Marketing allocation (per unit) | 5 |
| Total Additional Costs | 15 |
Marketing Budget
| Marketing Category | Annual Budget ($) |
| TV & online video ads | 140000 |
| Social media ads | 110000 |
| Social media manager salary & team | 80000 |
| Influencer partnerships | 70000 |
| Google Ads & SEO | 60000 |
| Public relations & events | 40000 |
| Total Marketing Budget | 500000 |
Sales Projections
| Year | Units Sold | Total Cost per Unit ($) | Total Production Cost ($) | Marketing Cost ($) | Revenue ($) | Profit ($) |
| Year 1 | 50000 | 40 | 2000000 | 500000 | 2999500 | 499500 |
| Year 2 | 100000 | 40 | 4000000 | 750000 | 5999000 | 1249000 |
| Year 3 | 200000 |