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Product Description
Green Stove is an environmentally friendly cookstove designed to harness both the thermal
energy and solar energy of the one of our most abundant resources: the sun. The cooking
chamber uses our patented cylindrical tube that is comprised of two concentric high density
plastic tubes that are vacuum sealed together. To harness the thermal energy from the sun, Green
Stove uses concavely bent metal that functions as a mirror that redirects the light into the
cooking chamber and also as the container. To contain the solar energy Green Stove has
electrical heating elements inside the cooking chamber that are powered via a high capacitylightweight battery that is chargeable by a detachable solar panel. In addition, Green Stove has
the following capabilities:
Cylindrical cooking area
Push-button start
Consistent performance, even in extreme conditions
Detachable solar panel energy source
Lasts up to 12 hours with battery use
230 watts in full sunlight
550 degrees fahrenheit capabilities for solar panel option
22,000 BTUs of cooking power for battery option
Cylinder: 36 inches long, 8 inches wide (Storage size)
Precise control for 1 temperature zone
Built-in handle and latching lid for easy carrying
Available in red, black and gray
Non-skid feet
Perfect for camping, tailgating, picnicking and other outdoor occasions
Met & exceeds safety standards
3-year limited warranty (Extended warranty available for purchase)
Part of our recycling program
Nonfinancial Goals
Be the leading hybridized solar power product
Develop a high quality, innovative product
Enhance the enjoyment of the outdoors
Reduce carbon emissions
Receive at least 4 out of 5 stars online rating
Core Competencies
At Coleman we develop high-quality, innovative products. These products promote our
customers enjoyment of the outdoors and creation of lasting memories. Coleman intends to
build on these competencies by continuing to add high quality products to our lines, such as
Green Stove, and ensuring our consumers innovative products.
Colemans newest product, Green Stove, shows off the companys innovative strive to
promote environmentally-friendly products. Green Stove enables campers to travel without
cords and wires, while allowing them to nourish themselves in any weather conditions.
Situation Analysis
Strengths
Established, leading company in the camping
industry
options
Weaknesses
Similar existing cookers
Electric grills control 2% grill shipments
(charcoal & propane)
Battery can secrete harmful chemical
Solar power reliant on sun exposure
Priced higher than competitors
Threats
Similar already-existing products
Elastic good depends on stable economy
Cannibalization
Products
Char-broil Kettleman Premium Charcoal grill
Singular temperature setting
Varied heat across skittle
Temperature gauge
Removable ash bowl
Damper to release smoke
10 year manufacturer warranty
Charcoal smoke emits soot into the Earths atmosphere which pollutes the air and can aggravate
heart and lung problems. In addition, grilling the meat on charcoal can form two kinds of
potentially carcinogenic compounds: polycyclic aromatic hydrocarbons and heterocyclic amines.
Marketing Mix
*explained further in Appendix A*
Product Strategy
Package Design
Coleman logo featured
Made of recycled materials
All packaging able to be recycled
Colors Offered
Gray
Black
Red
Customer Service
24/7 Coleman customer service department
Free shipping on return
Programs for existing grill recycling & refurbishing
Warranties
3 year limited warranty (does not cover damage inflicted by customer)
Option to purchase an extended warranty
Free shipping for repairs at Coleman
Testing
Exceeded all of the necessary safety standards
Signed off on by Consumer Product Safety Commission
Product Lifecycle
Currently in introductory
Patents
14 year on product design
Trademark
Green Stove
Distribution Strategy
Marketing Channels
Dual Distribution
Intermediaries
Direct Selling
Distribution Intensity
Selective Distribution
Physical Distribution
Outsourced Trucking
Distribution warehousing
Order processing in house
Intermediaries
REI
Cabelas
Dicks Sporting Goods
Gander Mountain
Lowes
Mills Fleet Farm
Home Depot
Menards
Promotion Strategy
Online
Google
Key words: Green Stove, solar cooker, clean energy, camping equipment, hybridized cooker,
coleman, clean camp stove, camp stove
2% of clicks result in purchase considered effective
Television Ads
Evening play time (5-11:00p.m.)
Outdoor Channel features
Email blasts to past Coleman customers
2% of emails sent result in purchase considered effective
Outdoor magazines
Camping Life
Backpacker
Type of Advertising
Institutional: Environmentally friendly
Advertising Strategies
Retail
Interactive
In-store demonstrations at select stores
Periodically through month one of release
Touch screen displays
Durability test
Ease of use
Quality
Pricing Strategy
The objective of our pricing strategy is profitability. This objective pushes us to
maximize profit. Coleman will be using the skimming price strategy initially for this product.
Although other solar cookers exist, there are no hybridized options that allow the capabilities of
Green Stove. Coleman intends to capitalize on being the first mover of this product for as long
as possible. Similar products sell in the market to consumers for $250-$300. We estimate that
customers are willing to pay $300 per Green Stove unit. Using psychological pricing, retailers
will price this product at $299.95 to give customers the perception that they are paying less than
Financials
*explained further in Appendix B*
Year 1- 2016
Year 2- 2017
Year 3- 2018
Controls
Sell 30,000 units of Green Stove in the first year
Receive at least stars after first year
Increase sales by 10% each year
Realize 5% profits in year two
Realize 10% profits in year three
Evaluations
What if another company develops a better version of Green Stove?
If another company develops a similar product with enhanced features, Coleman
has first mover advantage and will invest more money into the research &
development to continue to improve the current design. We have trademarked our
brand name and have established a design patent to thwart off competitors.
What if Green Stove sells less than 30,000 units in the first year?
If Green Stove does not meet expected sales in the first year, Coleman will
designate more funds to marketing for advertising and promotion.
Appendix A
Marketing Mix
Distribution Strategy
Our distribution approach will use dual distribution. This strategy will be a two pronged
approach using store sales through intermediaries as well as direct selling through the Coleman
webpage. This selling method will allow Coleman to maximize coverage in the marketplace as
well as increase their cost-effectiveness.
Coleman selected selective distribution as their distribution strategy. By choosing limited
intermediaries Coleman can continue to build relationships with their current sales force. Select
stores will be chosen to use cooperative advertisement. In our cooperative advertisements we
will use interactive touchscreen displays that will be discussed further in the promotional
section.
The Intermediaries chosen to carry Green Stove are as follows:
REI
Cabelas
Dicks Sporting Goods
Gander Mountain
Lowe's
Mills Fleet Farm
Home Depot
Menards
The physical distribution decisions made by Coleman for Green Stove are as follows:
outsources trucking, distribution warehousing, in house order processing. Outsourced trucking
will be provided via UPS, USPS, as well as through our intermediaries if they have their own
truck fleets. Distribution warehousing was chosen to limit finished goods inventory and keep a
1.
2.
Promotion Strategy
Online.
Coleman webpage
Google
Google AdWords will use 167+ clicks per day and will stop at $600 per day. This will
total to $219,000 per year.
Key words: Green Stove, solar cooker, clean energy, camping equipment, hybridized cooker,
Coleman, clean camp stove, camp stove
2% of clicks result in purchase considered effective
Television
1. Outdoor Channel
The Outdoor Channel has an average viewer age of 51, income of $56,000, and 75% of
them are male. The show we will advertise during is Fight to Survive. The Outdoor Channel
advertises this as their hottest show. This program is shown in the evening when our target
market is home from work. An average national TV commercial on well-known channels cost
$100,000 for a 30-second allotment. We will advertise 1 commercial per week for the first 5
weeks of year 1. These commercials will cost $500,000. During years 2 and 3, we will air 4
commercials for a total of $400,00 each year.
Email blasts. We will purchase 2 Premier packages through Campaign Monitor. This entails
unlimited email blasts for up to 100,000 past Coleman customers through s for $1,598 per
month for $19,176.00 per year. A purchase from 2% of emails sent result in purchase considered
effective.
Outdoor magazines.
1. Camping Life
Camping Life reports that the average age of their readers is 47, their average income is
$78,900, and 68% of them are male. In the next 12 months 37% of their readers plan to purchase
cooking equipment. In 2016, we will take out 8 ads in Camping Life. Each ad will be a full page
costing $7,230. The Camping Life ads in 2016 will total $57,840. In 2017 we will take out
another 8 ads in Camping Life throughout the year. Each ad will be page at $5,420. These ads
will total $43,360. In 2018 we will take out 8 ads in Camping Life throughout the year. Each ad
will be page at $4,620. These ads will total $36,960.
2. Backpacker
1.
2.
Advertising Strategies.
Retail
Interactive
In-store demonstrations
Demonstrations will be considered a mutually beneficial cooperative advertising
to generate foot traffic. All demonstrations will be in REI stores, a company
which has 143 stores in 36 states. These demonstrations will be held in the most
highly trafficked store in each state for a total of 36 demonstration sites.
Demonstrations will take place 6 times weekly during the first three months of
release. They will take place on two week nights--Wednesday and Friday-- as well
as twice per day on the weekend for a total of 6 time slots weekly. Demonstrators
will be Coleman employees trained to use Green Stove. The cost incurred
would be the cost of employing 36 Coleman employees 6 time slots a week for 12
weeks. Assuming each demonstration is 3 hours in length including hour setup
and cleanup and the employee is making $15 an hour the cost will be
approximately $ 298,080.
$15 x 4 hours x 6 demonstrations x 12 weeks = $298,080
Touch screen displays
After six months of demonstrations are completed, we will phase into
interactive touch screen televisions in REI stores to exhibit durability, ease
of use, and trusted Coleman quality. Using a 15 inch touch screen LCD
monitor will cost $289.46 per screen. These monitors will be supplied to
all 143 REI locations nationwide. The total cost incurred will be $41,393.
This demonstration deal will also benefit REI. In return for allowing us to set up
demonstrations, we will provide al 143 REI stores with 5 units of Green Stove at no
charge to them. This is incentive for REI to put the product on their shelves because the
sale would result in pure profit.
Appendix B
Financial Statements
Forecasting
Forecast for year 2016 (year 1). In 2011, there were sales of $776,000,000 barbeque and
outdoor cooking devices (http://www.ibisworld.com/industry/barbecue-grillmanufacturing.html). Of this, we have estimated that Coleman captures 10% of the market share
with their products offered. This results in annual sales of $77,600,000 in cooking devices sold.
Coleman currently offers 15 different types of grills. Assuming that each type of grill results in
equal profit, revenue per each current grill type equals $5,173,333. Green Stove , if able to
generate $5,173,333 in sales, priced at $150.00 per unit to retailer, would be equivalent to selling
34,489 units in a year. Achieving this price maintains Colemans ability to capture 10% market
share.
As a seasonal summer product, we estimate that 60% of our sales will occur in quarters two and
three at 30% each to account for warmer weather. 25% of our sales will occur in quarter four.
This number is lower than the summer because demand is typically less in the winter, but
remains higher than quarter one because Christmas sales will generate revenue. This leaves 15%
of sales occurring in quarter one.
Further, we broke quarter one sales into three even distributions of 5% total sales. Quarter two
and three has been divided into six distributions of 10% total sales. During quarter four, we have
allocated 75% of quarter four sales will occur in December as people buy Christmas gifts. This
works out to 19% of total year sales. October and November have been equally distributed as 3%
each of total year sales.
Forecast for year 2017 (year 2). One financial goal of Green Stove is to increase sales
by 10% each year. Therefore, year 2 sales will equal 37,938 units sold. We have kept seasonal
forecasting the same: 15% in quarter one, 30% in quarter two, 30% in quarter three and 25% in
quarter four.
Forecast for year 2018 (year 3). Keeping with our financial goal to increase sales by 10%
each year, Green Stove is anticipating 41,732 units sold. Seasonal forecasting is consistent at:
15% in quarter one, 30% in quarter two, 30% in quarter three and 25% in quarter four.
Income Statement
Year 1. Our revenues for year one result in 1/15 of 10% of the outdoor cooking market
share. This equals $5,173,333. Our cost to produce one unit of Green Stove is $75, 50% of our
selling price. In accordance with our REI in-store promotion deal, we are giving each of the 143
REI stores 5 free Green Stove units to sell in the first year. This means that we will have