Innovative Marketing of Innovative Product
The Oman region gets sunshine all year round. Also, the intensity of sunlight is higher compared to the western countries due to the desert conditions. All the electrical sources are directly substituted by the photovoltaic cells. Various elements in the market such as the demographic factors, high cost of utility and the historical information on sales will ensure that the demand for our products remains constant within the next five years. The following are the sales projections Solar Power Solution on the basis of the business location and the range of our products and services and target market; First Year-: $400,000; Second Year-: $800,000; and Third Year-: $1,500,000 (amount in U. It is therefore crucial for the company to be differentiated from its rivals.
The recent trends in the market show that photovoltaic is becoming an increasingly significant energy technology. There are various environmental benefits associated with the technology in which energy is derived from the sun. The energy generated is from a very clean source, and only a few other technologies used for a similar purpose have the little impact like photovoltaics. By generating electricity from the sun, photovoltaic does not produce any hazardous waste or any air pollution (Gastli & Charabi, 2010). If the innovative product is not promoted in the market then it is a huge loss to the producer and it is inferred that there is great loophole in the marketing techniques despite having an innovative product. Eventually to achieve optimal sales targets the marketing strategies should be revised to ensure the innovative product is sold in the market by creating optimal awareness within the market.
Integrated Marketing Communication is carried out to drift the focus from general marketing techniques to sophisticated database marketing where, there is an optimal control over the consumer and market which gains concentration of targeted market and prospective consumer. Potentiality/ Demand for the Product Photovoltaic Solar Panels product has higher potentials in the market of Oman because of the climatic conditions. Oman is a part of Arabian peninsulas and semi Gulf there are extreme climatic conditions and solar panels will have a profound effect in this area, and a subsidiary over electricity. Apart from all these facilities, the price of the newly introduced product is very competitive when compared to other solar panels that are available in the market, thus enticing the customers towards our product which is also superior in quality and added feature of thin film solar technology.
Various elements in the market such as the demographic factors, high cost of utility and the historical information on sales will ensure that the demand for our products remains constant within the next five years. This information takes into consideration the fact that the solar electricity systems have experienced a significant increase in their sales across the globe and is just a matter of time before solar energy becomes the mainstream source of electrify (Brocke, Seidel&Recker, 2016). This means that there is an enormous growth potential in the future. The company will offer lease on the purchase of its products due to the cost involved in acquisition and installation of the solar power systems. Investment Required & Costing & Pricing Table After critically examining production process, solar panel installation, repair and maintenance market as well as the chances in the industry, we have generated the following sales forecast.
The projection of the sales is based on the data collected from the prevailing market trends and assumptions made peculiar to the same corporations emerging within the gulf region. The following are the sales projections Solar Power Solution on the basis of the business location and the range of our products and services and target market; First Year-: $400,000; Second Year-: $800,000; and Third Year-: $1,500,000. As market penetration strategy and to introduce the product in the market best pricing strategies are adopted by Photovoltaic Solar Panels where the prices are as low as 80 OMR, and these prices are extremely low when compared to any other products that are currently available in the market. A similar and standard economical pattern is maintained across all the GCC outlets and supermarkets to maintain standardization of the product.
20) 90 180 (108) Tabing & Bus Wire 20 1 or 2 10 Flux Pen 1 1 1 Solder 1 1 1 Testing Diodes 0. 25 4 1 65 Watt Soldering Iron 50 1/50 1 Aluminum Frame 15 (5) 1 15 (5) Archival Glass 40 1 40 (30) Encapsulating Resin (Silicon) 90 1 90 (35) Assembly Labor 4 1 4 Management 5 1 5 Total Costs 348 (200) Profit 50% 174 Shipping 20 Selling Price 542 The corporation will apply the formula below to the return on investment for the production from one year to the next, in the following three years. However, the investment is long-term; therefore the return is expected to flow in the long-term basis. We plan that the business will generate its returns for the invested funds in approximately 8 years as per the following illustration. [Total System Cost ÷ Value of Electricity Generated ÷ Your Annual Electricity Usage = Payback Time] For the company: [system price of $15,000 ÷ $0. The additional and eye-catching features of Photovoltaic Solar Panels segregate it from the other products in the market.
Thirdly, in the current scenario, people are quite acquainted with latest products and additional features, if all the features are available at an affordable price the demand for the product will increase, and this is the only objective of the manufacturer of Photovoltaic Solar Panels. Distribution Strategy The process of distributing or delivering a service or good is to transfer the product from industry to the end user. Distribution can be direct to the end user or through intermediaries. This practice includes the 4P's of the marketing mix (Price, Product, Promotion, and Place). Retailers like Agility Co. has branches globally, provides fast and flexible distributing facilities, capable of maintaining our products and able to deliver products in excellent conditions. To retain a hold over the distribution and sales of products in the initial stages, manufacturers take the responsibility of distribution during the initial years of business within local markets which helps understand customer feedback instantly.
This exercise enables manufacturers to improve products at the local level itself and with minimal loss in marketing and distribution (Checkstand, 2015). In addition, the company is offering for its clients, apaid training program and learning courses addressing the education of utilizing renewable energy through installing solar panels. Advertisement for Photovoltaic Solar Panels This is a rational advertisement which is designed to highlight the uses of the product to satisfy the customer. The media chosen for the advertisement to be floated is mass media and social media eventually, the entire society can be covered by choosing these media. The target audience of the product are homeowners or residential users and commercial consumers. Since Solar Power Solution only deals with onlyPhotovoltaic Solar Panels eventually selective demand advertisement is done.
Mainly in selective demand advertisements are placed to attain the customer’s interest which is a short message designed in an attractive manner that is intended to persuade the products prospective consumers. Eventually, this medium is very responsive and quick monitoring and interaction with customers can be attained within fractions of seconds. Further, it is one of the inexpensive mode of direct marketing and can communicate from both the sides simultaneously. Additionally, an order can be placed online and the payment confirmation can be made instantly hence, it helps in every stage from marketing to the final delivery in terms of conservation. Name and phone numbers are the only two credentials that are included in the data base of Solar Power Solution.
Legal and Regulatory Aspects Solar panels made using the Poly Crystalline silicon based technology have various characteristics. Another significant factor to consider is the fact that the process of producing the panels is not environmentally friendly. The production process for Poly Crystalline silicon involves a lot of chemical substances which makes it contaminating (Al-Badi et al. Being a company based on production of clean energy, this creates an ethical dilemma as the process involves chemicals that degrade the environment. After the production is complete, the panels come at high prices due to the cost of the raw materials used in production. Therefore, to provide the customers with a most effective product and at an affordable price, Solar Power Solution Corporation has to come up with an alternative technology that will enhance consumer satisfaction.
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