Techsonic Industries Inc. Humminbird New Products

Despite competing in a broad market environment, JB Hi-Fi is able to outperform its competitor and placed them well ahead in the market gaining a large marker share. JB Hi-Fi tries to achieve its objectives of expanding its market share by adopting 3

* product’s contribution margin under conservative estimates is at 79% which represent a very lucrative product profitability

The last complication leading to the Kittyhawk projects demise came from the customers themselves. After the launch of the first Kittyhawk hard drive, many new unexpected customers stepped forward to show interest. This situation became the proverbial carrot-on-a-stick for the Kittyhawk team. However, none of these customers provided sure sources of revenue by entering into

The CLV’s for this alternative are shown in Exhibit 2. We assume the Architectural Series will be a leading product in the market and will earn a high retention rate among ultra high-end dealers of 90%. Sonance would also be able to initially attract 50% of these niche dealers they had in 1999 (75 vs. 150 previously). Sonance would have the choice in this scenario to price the Architectural Series at either $875 per pair, based on the advice of their focus group, or $305, based on the internal marketing group’s recommendation. Our assumptions regarding customer mix for this scenario is that Sonance would drop the mass retail market customer to signal they are focused only on the custom and semi-custom installation markets. In addition, Sonance would consider reducing the price of their Original Series Speakers to the Dealers to $90 from $140. This would improve the Dealers’ gross margin to 75%, equal to SpeakerCraft’s, although the margin net of installation costs would still be lower (see Exhibit 2). These assumptions would lead to an increased Retention Rate through the Dealers sales of Original Series Speakers of 85% and a higher growth rate of 10% vs. 5%. Sonance would also increase their Retention Rate with Dealers for the existing iPort product to 85% in this scenario.

During its formative years, Tweeter gained the reputation of being the retailer of high quality, high-end audio components and video equipment. They had a knowledge able sales force providing

When an innovation is perceived to have a high relative advantage, compatability, trialability and observability and a low complexity, it is more likely to be adopted. (Rogers 2003, p.

From exhibit 13 in the case it is clear that Tweeter is price competitive in almost the entire range of items and models that it sells. In an objective model by model comparison (see appendix 1 for a sample comparison) Tweeter either matches or betters competitor 's prices. Further more when you compare quality and level of service and price paid Tweeter is cheaper than the competition.

Considering that our only competitor in the field of navigation systems is VectorCal, it was important for us to carefully determine pricing that was, not only competitive enough to beat the competition, but affordable enough to increase customer demand. Our Analysts have worked diligently in reviewing the cost to manufacture our product from all different angles and scenarios in order to create a price that meets the terms of the contract and allow us to

Impact on customer relations – It has been brought to notice by Sales department that Aerial may not meet the speed expectations of customers and might fail in justifying the premium it demands over its competitors. However, TerraCog’s present customer base for GPS products comprises primarily of hunters, hikers and campers who mainly focus on durability and accuracy of the product, which are both addressed by Aerial. Better product design, additional value-added features along with satellite imagery display is expected to justify the trade-off in speed. Hence, launch of Aerial is expected to enhance the customer’s experience with product offered by TerraCog and have a positive impact on customer relations.

This gain value and addresses a key decisive achievement factor in the industry (Grant,2010). As position is important to offer convenience and a deep assortment, An extra unique intangible resource would be their brand representation and customer loyalty, this is vital since it can attract or attract consumers and it could be necessary to build the brand image .

Enclosed report deals with the launching price problem being faced by TerraCog for its forthcoming GPS product Aerial, different options that are available to the company, selection criteria for evaluation and proposed solution along with action plan and contingency plan.

Customers now perceive Tweeter as expensive but not more than its other competitors. By changing the marketing mix and including the buyer guide, it tells the customers who are interested in high quality, the features of the products and ensures them that they are taking a calculated decision. These customers who are particular about the product now appreciate Tweeter’s efforts to provide technical advice and provide fair advices about the product through the guide.

In spite of the huge market they represent, not all companies in recent times have been successful in fully recognizing their importance and reaching them. Many times they are treated as a niche segment at best or not recognized at all. Bad design choices and marketing campaigns based on prejudiced and old preconceived notions have led to many a well meaning products bite the dust in the market or perform way below

In a market where all the products are quite similar and always being renewed because of new technology, a clear positioning is more than important for the

Competitive positioning is often measured by market shares – is a company becoming a dominant leader? one amongst peers or a small player? The market share trend should also be considered as well as industry specific factors – e.g. brand equity, product differentiation, customer loyalty.