Marketing Fundamentals PLX Devices

Question: Discuss about theMarketing Fundamentals for PLX Devices. Answer: Introduction The launch of Legion Solar System by PLX Devices The PLX Devices will be launched in the end of the October, probably on 24th October 2016. The time chosen for the launch of this new solar system device is appropriate since it coincide with the sunny days predicted by the Australian meteorology department. Before onset of winter and after the probably cloudy days the end of October would be best for the launch of new Legion Solar System by PLX Devices. The Three Prime Marketing Objectives After the launch of the product the next six months of the PLX Devices is aimed to achieve the following objectives: First Objective: Making extensive use of digital marketing: PLX would use the existing platforms for digital marketing for promoting its latest solar system. The emphasis would be given on the high efficiency of this new product as compared to the older ones. The official launch could be broadcasted in companys Twitter, Facebook and Instagram accounts. The company would make use of its Online Partnerships and Email Marketing approaches to create awareness about this new product. This objective is to complete this task by the end of December 2016. Second Objective: Establish relationships with the industry specialists and key suppliers: the PLX enjoys a good market name for its technical support devices. It is a market leader in automotive tech design, diagnostics and services. PLX device would thus use its market reputation to promote the new product, highlighting its salient features and point of differentiations (PLX Devices, 2015). The objective is to establish a strong buyer base, supplier chain and common awareness about the utility of the Legion Solar System by January 2017 end. Third Objective: Securing sale for the Legion Solar System: after successful awareness creation, promotion and relationship establishment, the PLX Devise aims to make sale of the new product in full swing. By the end of six months from the product launch, the company aims to make good sale of the new product at retailers as well as in the established companies using solar energy for their operations. It is expected that the sales (by volume) should increase by 10% on quarterly basis. Market Segmentation, Targeting Consumers and Envisioned Market Positioning PLX Devices use a highly customer oriented marketing strategy by initiating the segment identification for its new product. The defining of homogenous groups would help the company to better target its potential customers. By segmentation company can take care of specific needs of the customers and come up with suitable product variants, prices and offers accordingly (Blythe and Megicks, 2010). PLX Devices will focus on the following two segments of customers for its new Legion Solar System: Average middle-income group families, for whom saving on electricity bills are a crucial thing. Industries using solar system and could utilize the economies of scale by switching to Legion Solar Systems. Company can identify these segments and then effectively target them with the appropriate offers and schemes. For the middle-income group families, the important aspects are the cost of the solar system, ease of deploying, and the savings on the electricity bill. These factors could be emphasized by the marketing approaches adopted by the company. Advertisements in local newspapers, television channels and personalized meeting with the community halls with the local people can be of benefit for making the product popular among the targeted customers. Likewise, the high energy consuming industries such as manufacturing units could be targeted by the company with the plan to save their operational costs as well as to present them as a socially responsible entity using solar energy. The large companies could make use of highly effective Legion Solar panels and reduce the energy consumption costs and eventual increase in the company profits. The available solar panels and devices in the industry costs more than $ 20,000, which is highly unrealistic for middle-income group people. Thus the company can easily position its new affordable, flexible and Do-It-Yourself (DIY) starter kit with costs starting at only $599 ($499 Preorder) (Legion Solar Starter Kit, 2015). Product Pricing Strategy The industry of solar panels and solutions has range of products with the target of capitalizing from the high energy using companies like manufacturing units, etc. Therefore, solar panels and devices in the industry costs more than $ 20,000, which is highly unrealistic for middle income group people. The new Legion Solar System by PLX Devices is thus an affordable and flexible option. It comes as a Do-It-Youself (DIY) starter kit with the costs starting at only $599 ($499 Preorder). The Core Product the core product is the solar panel that comes in a small size and is easily deployable by following the manuals provided. The Actual Product - The starter kit comes with 2 (100 Watt) solar panels, 1 (160 Watt) inverter, inverter mounting screws, 1 t-harness, 1 plug-in harness, 8 z-brackets, mounting screws, nuts, and washers. The Augmented Product the starter kit is accompanied by a solar hub or mobile we based application for smartphone monitoring The pricing strategy for the product is based in giving the customers adequate savings on their present electricity bills. The price of the product is less than the industry average. The normal solar panel systems could cost above $4/W. this means that a 5 kW system would come to cost above $20,000. While the Legion Solar the cost is less than $3/W. The company also claims that the initial cost invested by the consumers can be recovered by them in less than three years of savings. Product Pricing Strategy The product placement is a strategic aspect of the entire marketing exercise. For the new Legion Solar System, the best possible market is the average middle-income group family. These are the people who look forward to savings in their utility bills; also the second potential market is the big industries where the energy consumption is huge. These companies can make use of solar panels to save operational cost. The company is based in San Jose, CA and the local areas around it is the first potential market placement arena. The promotion could be done by the PLX Devices by advertisements in local newspapers, television channels and personalized meeting with the community halls with the local people can be of benefit for making the product popular among the targeted customers. For the targeted industries the company can make use of upcoming trade fairs in the area and putting up an interesting stall in trade fairs is sure to attract the attention of companies seeking new advanced technical systems to save their operational costs and increase profits. The digital marketing and relationship marketing approaches could be used by the company to establish its new product (Hollensen, 2010). The company has its presence on the social media; the same can be used by it to promote the Legion Solar System. Action Program Since the official announcements of the Legion Solar System the PLX Devices is working tirelessly to ship its products as soon as possible. The company is all set to roll out the Legion Solar system in two stages: The first stage is the shipping of the panels, micro inverter, and rest of the required wiring. This would suffice for consumers to begin with their experiments with the solar energy and to start making their own electricity. The second stage comprise of the shipment of the Solar Hub and the Android/iPhone app. The purpose of this application is monitoring of the production of power output by the consumers (Legion Solar Starter Kit, 2015). Activity proposed Person Responsible October Preparation of promotional materials for the Legion Solar System. General Manager Sales Manager Persuading the project backers General Manager Updating of the project details on the company website and other digital media channels. Advertisement of the product. Office Manager Sales Manager Invitations to industry specialists, suppliers and key stakeholders for inviting them to the product launch. Office Manager Sales Manager Official launch of the Legion Solar System on 24th October 2016. All Staff Sales calls. Meeting with the local families and industries representatives Sales Manager November Start of the social media campaigns to target the identified customer segments. Sales Manager Office Manager Connecting with the customers online and providing information and support. Sales Manager Office Manager Connecting with the big industries, which can use the Legion Solar panels. General Manager Sales Manager December Develop relationships by calling and meeting with clients. Sales Manager Devising specific plans and schemes for the target customers. Special corporate offers for the bulk purchases could be strategized. General Manager January Follow-up of the leads of potential customers must be done effectively to convert them to maximum purchases. Sales Manager February Supply and after sales management must be emphasized to sustain growth in the sales. Product Manager, CRM Manager March Re-look at pricing strategy. Potential price increase for 2017. General Manager References Blythe, J. and Megicks, P. (2010) Marketing planning: Strategy, environment and context. Harlow, England: Financial Times / Prentice Hall. Hollensen, S. (2010) Marketing management: A relationship approach. 2nd edn. New York, NY: Financial Times Prentice Hall. Legion Solar Starter Kit (2015) Legion DIY solar. Available at: https://www.plxdevices.com/Legion-DIY-Plug-and-Play-Solar-p/897346002894.htm (Accessed: 30 September 2016). PLX Devices (2015) About us. Available at: https://www.plxdevices.com/aboutus.asp (Accessed: 30 September 2016).