1.0 Executive SummaryCrichton Inc. will be the first outdoor grill company to release an outdoor grill that can clean itself after its use. The Perfect Grill will add simplicity and convenience to outdoor grilling. It will be affordable as well as durable to the user which will help the consumer by saving money from purchasing too many outdoor grills after they break often. This will ultimately satisfy the consumer's need by saving them money, time and cleanliness. Having a self cleaning feature will keep the grill durable and clean for the grill and the food that it cooks.
Crichton Inc. will focus on marketing to homeowners, families and businesses. These three targets are the most frequent buyers of outdoor grills. The company will have over 300 million potential buyers who purchase outdoor grills. 75% of all users are families and homeowners while the other 25% are businesses. This is an important fact because the product will appeal to businesses as well as families and homeowners.
Even though it is 25%, this is a profitable fact because businesses tend to purchase more than one grill as opposed to families and homeowners that only purchase one at a time.
The Perfect Grill will be priced at an affordable price of $499. This will make the product extremely affordable to businesses and next to nothing to the rest. The first full year of sales, the company will sell 415 units totaling $207,085. During the second year, the company should sell approximately 500 units. The second year should lead to the third year for a total of 700 units.
With the variable cost of the unit being $83 per unit, it will take 209 units in order to have the company break even. Based on a break even analysis and variable cost, the total variable costs for the first year will be $34,445 in total variable costs. An expense and revenue report will be generated every week, month, quarter and annually to be analyzed regarding the progress of the company. This will help assure the company from potentially making errors that could put the company at risk of losing money.
The keys to the success of the company will be organization, market research and follow through. This will help the company have the best opportunity to have success. Organization will help avoid confusing situations or reports that will be generated for analization. Market research will be critical to the success of the marketing strategy and target markets for the outdoor grill. Finally, with every good plan of action, follow through is critical to the success of the plan. The company must follow through well with all aspects of the marketing plan in order to achieve success. Having follow through does not guarantee success but if there is no follow through, the percentage of success does go down dramatically. This is a good company with a great marketing plan that has been created with a lot of research and effort to minimize the potential of money lost.
ReferencesKotler, P. and Keller K., (1997). Marketing Management. Pearson EducationMyers, D., 2007 GRILL CONCEPTS INC - Quantitative Valuation Report. Retrieved on July 20 from http://www.researchandmarkets.com/reports/563734/