The purpose of this report is to develop a new product to help our customers to clean and sweep their home easily and it will greatly reduce the chance of getting injury in the home accident!
This report also recommends the marketing strategy and design a marketing-mix programme for introducing this new product, so that we can launch the new product successfully.
Nowadays, Hong Kong does always have a serious pollution problem. Mostly, the air quality of HK has always reached a high air pollution index. The pollutants are mainly come from the heavy traffic, the factories, and the pollutants that blown from the mainland China.
As a result, HK has always got a serious air pollution problem, and it is easy to get many dust and pollutants at our home. It may cause different kinds of diseases on our respiratory system. For example, dyspnea, bronchitis, asthma, or even worst, it may also cause acute respiratory conditions.
In order to ease the problem, we should clean and sweep our home frequently and having a better and cleaner environment for us to live. However, there may be difficulties at cleaning and sweeping the corner and at the top area of our home. So dusts and pollutants may easily accumulate at these areas. And, there is also being a chance that the home accident may occur when we climbing up and down in order to clean the top and the corner.
So, our company has decided to introduce a New Product called the Home Cleaner to ease these problems. The Home Cleaner will help you to clean and sweep your home easily and it will greatly reduce the chance of getting injury in the home accident!
The marketing mix consists of the way in which the various component parts and techniques of the marketing efforts are combined and varied in order to achieve marketing objectives. The way in which the component of the marketing mix are combined depends primarily on the marketing environment in which the company operates. So we need to analysis the constituents of the market environment.
1.1 Customer – Habit of doing the housework:
Nowadays, many families in Hong Kong are using the towel, cloths, mops or the pads for their home cleaning. Normally, many housewife and maid will sweep their home daily or twice per week.
These kinds of household duties include:
However, housewife and maid are always required to lift themselves up in order to clean these areas completely. By climbing up on the stairs or standing on top of the chair, they could clean the top of the cupboard, the cabinet or the shelves entirely. Therefore, they are easily getting injury when they are doing the housework.
1.2 Health care of people
After the SARS that happened in 2003, more and more people have begun to pay more attention on the cleanliness of their home. People in Hong Kong have become more health conscious and take this factor in to account.
Lately, the air pollution problem is getting more serious in Hong Kong. More and more citizens are suffering from the respiratory disease. For instance, dyspnea, bronchitis or asthma. And people are getting more concerned on their household environment.
1.3 Customer analysis
As our market is mainly focused on the consumer market, so we have done a marketing research for the household cleaning tools.
We have distributed 32 questionnaires and have received 30 of them.
The strength of competition and the threats of new entrants.
Household cleaning tools:
cleaners, sponge, pads, brushes, scrubbers, wipes, cloths, roller and floor duster, cleaners
different grocery store
Household cleaning tools:
sponge, pads brushes, cloths
different grocery store
Mainly in the grocery store
Simple, Smart, Clean, Fast
a) At the high places:
People who are short may clean these places hardly and they need to stand on the chair. For example, the top of cupboard. By using our product, they can clean these areas comfortably with standing on the floor.
b) The small gap: To clean these places, people are required to bend their waist and lie on the floor, using the towel or mop to sweep this area. For example, the area where under the sofa and the cabinet. By using the new product, this problem will be solved and people can clean these areas comfortably with standing on the floor.
2) Safe When people want to clean the top of cupboard, people can extend our product. This can greatly reduce the chance of getting injury from falling down from the chair. Moreover, by using our product people need not to lie on the floor when they are cleaning the area under sofa. Also It is more easy to clean the total area perfectly and prevent to get injury of their waist.
– Our product can be mixed with different cleaning material instead of many cleaning tools. So it’s convenient to use our product. Also, it’s easy to change the head of the product.
Frequently change the cleaning material
If people clean home perfectly in a days, people should change the cleaning material many times.
Not suitable for every one –
If a person never clean the top of cupboard and the area under the sofa, our product is same normal mop.
As more and more people are concerning about the household cleanliness and the hygiene of their living, so there will be a large market occurs.
As most of the mops and cleaners are normally sold at around $ 25 to $125, and our All-in-One Home Cleaner will be sold at $100. So the price of our cleaner will be slightly expensive than the original one.
Type 1: Housewife
Type 2: Maid
Type 1: Housewife
As most of them are the homemakers and they always work at home and takes care of the house and families. Also, they are responsible for the household cleaning duties, so most are our customers are belongings to thise sector.
Type 2: Maid
Besides the housewives, maids are also our main customer.
Because they often need to handle different kinds of houseworks. If there is a New innovative and helpful house cleaner, plus if the is reasonable, they will also keen on using the new product.
We will divide our market into 3 geographical units, and they are Kowloon Peninsula. Hong Kong Island, the New Territories and the offshore islands. We will mainly distribute our new product to the PARKnSHOP and Welcome supermarkets. And there is more than 200 PARKnSHOP and over 240 Welcome stores in Hong Kong.
Our customer is mainly belongs to the upper lowers, working class, middle class, upper middles and the lower uppers.
Marketing-mix to introduce the new product
Scotch-Brite® Home Cleaner is an adjustable cleaning tool. Nowadays, some mops can extend their length and refill the mop sponge. In our product, it also has these functions. Besides, it can be distorted at the middle of the handle.
Our product is made by aluminum and plastic. These two materials are light and strong enough so it wouldn’t be broken easily.
Our product can extend to 1.5m. This length is suitable for cleaning any places such as the top of cupboard and the under of sofa. When it is folded up, it is 0.8m. It is easily for stored at any where. For the mop sponge, it can be change different form for cleaning. This design is special. People can change mop sponge easily with less time. By the way, our product can be mixed different form or tools for cleaning different dirt. For example: General are mop sponge , brush and sweeper. Special materials are duster cloth , disposable floor dusting paper and scrub sponge.
This has to commensurate with the perceived value of the product to customers. We set the price $30 for each home cleaner. Our product include good quality, image, powerful function and strong brands value, our company seek to become the market leader, and thus we set prices as low as possible to grab market share from rival firms.
We set a suitable price to skim revenues from market, also the cost of producing a home cleaner can’t be so high so it can’t cancel the advantage of charging more, and the skim price must match the quality of home cleaner to show its position-good quality. Because consumer interest in new product, so it skim high revenue. As we know there are many competitors in the market, so our price is around the price of our competitors, but otherwise we have the quality and powerful function that they haven’t. So we set $30 for each can attract more buyer and makes our sale more profitable.
It is important to decide the methods used, such as advertising, merchandising , sales promotion and publicity, to present the product in an attractive lights to customers.
Premiums and gifts : one accessory
Coupons: discount for buying sanitary product
Promoting place: PARKnSHOP, Welcome
About the promotion, we use a combination of pull and push strategy that we direct the marketing activities such as advertising and sales promotion toward wholesaler, retailer and consumer to induce them to buy the product.
Our promotion objective is to inform the wholesaler, retailer and consumer to persuade them to buy. We use category, posters and exhibition have advertising to inform the market and tell the market about a new product. In the category we have coupons and lucky draws to attract customers to buy our product and we can get the data that we need. Also we use persuade advertising to build good image and brand preference, encourage consumer to purchase at once.
About the promotion budget, we want to set at a certain percentage of current at the sales.
We find out where and how the product is to be sold, i.e. the channels of distribution. As our targets are housewife and maid, we would find some place that housewife and maid usually go. After the survey, supermarkets are our market place. We chose Welcome and Park’nSHOP.
The significance of the marketing mix is that it is the main instrument through which marketing strategies are implemented. Our targets mainly are housewife and Maid. To gain their intention and motivation, we have designed coupons, premiums and gifts. As most of the housewife and maid would usually go shopping in PARKnSHOP, Welcome, so we chose those two supermarkets to be our Promoting place. Also, we have designed a poster. In our promotion, we would focus on the quality of our product.
3M Company (NYSE: MMM), formerly Minnesota Mining and Manufacturing Company until 2002, is an American multinational conglomerate corporation with a worldwide presence.
It produces over 55,000 products, including: adhesives, abrasives, laminates, passive fire protection, dental products, electrical materials, electronic circuits, optical films, and supply chain management software. 3M has operations in more than 60 countries – 29 international companies with manufacturing operations, and 35 with laboratories. 3M products are available for purchase through distributors and retailers in more than 200 countries, and many 3M products are available online directly from the company. 
At a Glance
3M was founded in 1902 at the Lake Superior town of Two Harbors, Minn. Five businessmen set out to mine a mineral deposit for grinding-wheel abrasives. But the deposits proved to be of little value, and the new Minnesota Mining and Manufacturing Co. quickly moved to nearby Duluth to focus on sandpaper products.
Years of struggle ensued until the company could master quality production and a supply chain. New investors were attracted to 3M, such as Lucius Ordway, who moved the company to St. Paul in 1910. Early technical and marketing innovations began to produce successes and, in 1916, the company paid its first dividend of 6 cents a share.
The world’s first waterproof sandpaper, which reduced airborne dusts during automobile manufacturing, was developed in the early 1920s.
A second major milestone occurred in 1925 when Richard G. Drew, a young lab assistant, invented masking tape – an innovative step toward diversification and the first of many Scotch® Pressure-Sensitive Tapes.
In the following years, technical progress resulted in Scotch® Cellophane Tape for box sealing and soon hundreds of practical uses were discovered.
In the early 1940s, 3M was diverted into defense materials for World War II, which was followed by new ventures, such as Scotchliteâ„¢ Reflective Sheeting for highway markings, magnetic sound recording tape, filament adhesive tape and the start of 3M’s involvement in the graphic arts field with offset printing plates.
In the 1950s, 3M introduced the Thermo-Faxâ„¢ copying process, Scotchgardâ„¢ Fabric Protector, videotape, Scotch-Briteâ„¢ Cleaning Pads and several new electro-mechanical products.
Dry-silver microfilm was introduced in the 1960s, along with photographic products, carbonless papers, overhead projection systems, and a rapidly growing health care business of medical and dental products.
Markets further expanded in the 1970s and 1980s into pharmaceuticals, radiology and energy control.
In 1980, 3M introduced Post-it® Notes, which created a whole new category in the marketplace and changed people’s communication and organization behavior forever.
In the 1990s, sales reached the $15 billion mark. 3M continued to develop an array of innovative products, including immune response modifier pharmaceuticals; brightness enhancement films for electronic displays; and flexible circuits used in inkjet printers, cell phones and other electronic devices.
In 2004, sales topped $20 billion for the first time, with innovative new products contributing significantly to growth. Recent innovations include Post-it® Super Sticky Notes, Scotch® Transparent Duct Tape, optical films for LCD televisions and a new family of Scotch-Brite® Cleaning Products that give consumers the right scrubbing power for a host of cleaning jobs.
List of group members’ tasks
Hui Chi Yan (30070321) Group C
– Competitor analysis
– SWOT analysis
Ho Wai Lun (30069857) Group C
Kwan Chung Hang (30070343) Group C
Hung Ka Chung (30070150) Group C
Hsu Yun Yeung (39970304 ) Group C
Hui Chi Yan
Ho Wai Lun
Kwan Chung Hang
Hung Ka Chung
Hsu Yun Yeung
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