Date:                          July 25, 2016

To:                               The CEO of Home Essentials, Inc.

From:                           The Marketing Manager

Subject:                       Addressing Consumer’s Knowledge about the Product

The company is experiencing a problem that needs an immediate solution. Precisely, the problem the company is facing involves consumers lacking knowledge about the product. Consumers consisting of new parents do not have information about the existence of the product and its functions. The product that the startup company tried to introduce to the market is a baby gate/play area and due to consumers lacking information about the product, the company experienced no demand from the new parents. Even after getting positive reviews in the baby and home magazine, the management could not provide enough information about the product to the consumers.

The following factors might contribute the problem that the company is facing currently. First, the company lacks appropriate advertising channel to pass information about the product to the consumers. The company lacks advertising channels such as the social media sites mass media, direct mails and catalogs. Although the company has a working website, it still could not appeal to the clients. It would have been significant to the company if they had made use of the company’s official website. Moreover, the company is in a bad condition to the extent that it uses word of mouth to advertise the product. Second, the company faces inadequate finance to carry out the operation. Without the capital, it is hard for the company to fund the advertising of a baby gate/play area for the new parents. The lack of capital plays a critical role in diminishing the demand for the product (Chandrasekar, 2010). The startup company is unable to reach out to the current and potential customers because it could not finance its activities.

Lastly, the company’s managers practice self-interest. The managers have put their interest first by demanding to get a slice from the company if the operations are successful. For a startup company, it is important to prioritize the interest of the company (Lamb, Hair & McDaniel, 2012). With the self-interest, it is difficult for the managers to work on strategies that would increase consumers’ demand and knowledge of the product.

Being the marketing manager of the company, it is my responsibility to design and recommend most viable solutions to the problem we are currently facing. The company is in a situation that would require an immediate action so that we do not lose our customers. The market is very competitive, and it is a matter of time before we could see new or similar products brought to the market by our competitors. Some of the solutions that I will recommend to the CEO of the company include the following. First, since the startup company does not have money to run its operations, it would be appropriate if the company gets a loan from the financial institutions to finance the marketing campaigns. It is hard to run a marketing campaign without the capital that would make it successful. Capital is important to any activity in the company, and without it, nothing will go as planned (Chandrasekar, 2010).

Second, the company needs to improve its advertising strategies. The company should move from using the word of mouth to the use of internet and television as channels that will enhance brand awareness and help consumers know more about the product. Therefore, the media that the company should use is the internet and television. The first step that the company should consider is to leverage the web. Since most homes and businesses around the globe are online, and mobile phones can be used to access the internet, it is the time that the company should improve its existing website. The company should hire a search engine optimization experts that would ensure the website appear high in the web search (Chandrasekar, 2010). A search engine marketing is a better way to promote the product by disseminating relevant information about the product to the customers.

The second step is that the company should create a social media site. The social media sites include Facebook, Twitter, Instagram, and YouTube. This will help in creating brand awareness because the sites provide platforms where the company can discuss with consumers about the purchases and products they like (Lamb, Hair & McDaniel, 2012). The product we are talking about is the baby gate/play area. The company can use the YouTube to demonstrate to the customers how the product functions and provide the same links on Facebook and Twitter. Moreover, the company can take pictures of the product and post them on Instagram, and this will increase consumer awareness of the product (Lamb, Hair & McDaniel, 2012). On the same note, the company should consider the price to charge its customers for purchasing the product. Determining the price can be tricky, but the company can create an impression of bargain pricing. Currently, the price of the product is $100, and since the consumer’s demand is low, it would be appropriate if the company uses a better pricing strategy such as offering discounts to customers. Discounts will attract more customers to the store.

The third step is to sponsor public events. If the company decides to contribute to charity events, it is easy to display the product or name of the company to consumers who have attended the event (Shimp & Andrews, 2012). Similarly, potential customers will have a positive perception of the product and the company. The company should suggest events such as family weekend events since the target customers are parents, and this will generate publicity for both the company and the product. Lastly, the company should display the product prominently in stores. Customers can know of the existence of the product if the company places it in their line of sight (Shimp & Andrews, 2012). With place as a marketing mix, the company should consider the distribution channels that will help get the product to the customers. The company should make use of its retail stores to sell the products directly to the customers. Direct sales are significant because the marketing team gets the chance to meet the customers face to face (Shimp & Andrews, 2012). Therefore, I will recommend the company to use internet media and improve its advertising strategy to attract more customers to purchase the product.

References

Chandrasekar, K. S. (2010). Marketing management: Text and cases. New Delhi: Tata McGraw-Hill.

Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.

Shimp, T. A., & Andrews, J. C. (2012). Advertising promotion and other aspects of integrated marketing communications. Cengage Learning.

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