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Executive Summary
ApplPoly Company offers polystyrene foam products to various industries. These days, the company is seeking to find a new market for its new, dome-shaped roofs. For almost four years, ApplPoly has been putting much weight on Preston, who has been working as a chemist at the ApplPoly resins laboratory, to innovate an idea that will create new markets for ApplPoly’s foamed polystyrene.
Preston came up with the notion of a foam dome, which entails utilizing foamed polystyrene to create roofs and other constructions that are dome-shaped. It seems that ApplPoly products got into the present situation because the company did not take adequate measures to market their products.
The company, also left the task of marketing to Preston alone, because she developed the product. The roofing domes created by ApplPoly are environment friendly and appealing, which makes them relevant in the modern world. Also, the products are quite cheap, and they require minimal maintenance costs. The focus of the Company will be on external markets, such as Europe and Japan, as well as the internal market.
Polystyrene becomes widely used in Europe and Japan by individual persons and companies in the hospitality sector. Other target markets in this sector are small businesses that import polystyrene, as well as construction materials, in the USA. Many industrialized nations prefer using domes instead of wood and cement, as they are friendly to the environment.
However, some states have regulations that do not favor the selling of roofing materials made from Polystyrene. This marketing plan describes some strategies that managers and employers at ApplPoly can use to find a new market for their polystyrene foam domed roofs.
Background Information on Industry
ApplPoly Company specializes in the production of polystyrene foam products. The Company manufacturers various polystyrene foam products, such as roofing materials, packaging products, as well as food containers or cups. The products of ApplyPoly become used by various industries, mainly in the construction, hospitality, and manufacturing fields.
These days, ApplPoly wants to establish new applications for their resin commodities that are profitable. For almost four years, ApplPoly has been putting much weight on Preston, who has been working as a chemist at the ApplPoly resins laboratory, to innovate an idea that will create new markets for ApplPoly’s foamed polystyrene.
Preston came up with the notion of a foam dome, which entails utilizing foamed polystyrene to create roofs and other constructions that are dome-shaped. Preston convinced her bosses that her scheme had potential due to her excellent promotion skills. A preliminary study became performed by the marketing research department, and they recognized several areas of buildings where the domes could be used.
The center of the study was on uses for current construction that get made by a dome. The research revealed that using foam boards can create immense savings because of the decreased time of construction. Several areas of construction that can make use of the domes, according to the research department, comprised of cold and bulk storage, coats for industrial tanks, as well as educational and recreational structures.
As of the fresh technology implicated, the corporation decided to perform its personal contracting for not less than four years. Preston deemed this as vital because it would reduce the chance of having mistakes executed by the raw contractor groups. For instance, the plastic could burn because of failure to follow appropriate guidelines.
After constructing some domes in the United States to reveal the idea, Preston visited some principal architects in the U.S. The first architect appreciated the idea, although he doubted whether Chicago’s fire marshal would embrace the idea. The second architect explained his fears that there existed no accurate tests of fire for unconventional building materials, although Preston’s test demonstrated that foamed domes could be guarded against fires.
The third architect expressed his concern that the foam board lacked impact resistance like cement. The fourth architect said that they designed numerous facilities for recreation, and children are apt to poke holes in the foam. The last architect said that building regulations in his area only allowed the use of wood and cement.
After this unanticipated reaction, the administration felt puzzled. However, Preston suggests that the project should continue, as it is promising. She intends to create additional projects for exhibitions in Europe, the United States, and Japan to present the idea to the international market.
Preston is extremely optimistic, as she thinks architects from other nations could be open to new concepts, unlike those within the nation. Preston thinks that potential users may take time before they can visualize and acknowledge new concepts. However, Preston believes that exposure to a vast number of people may quicken acceptance.
Moreover, Preston believes that her idea will become popular through formulating some reports, which contain images of appropriately constructed domes in prime magazines and trade papers. Today, Preston is busy trying to prepare such reports. However, her seniors are not certain of whether they should put additional resources into this project. Preston’s direct boss appreciates her ideas, while other members of the review board are not sure of whether to let the project focus on the internal market or the outside market.
It seems that ApplPoly Products got into such a situation because the company did not take adequate measures to market their products. The company also left the task of marketing to Preston alone, because she developed the product. Also, the fact that the manager of ApplPoly is not ready to invest additional money on Preston’s project demonstrates that the manager does not have trust in the new product. It is upon the management of ApplPoly to support Preston financially, especially in her projects and advertisements.
Market Growth
Last year, polystyrene foam product companies reported a 15% Increment in average revenues for their polystyrene foam products (United States Century Bureau, 2012). Since ApplPoly is a subset for this market and, so the company must be experiencing an increment that is close to this value. However, the growth of ApplPoly ‘s dome-shaped roofs remained low, like other products of the company, such as plastic containers and cups, experienced continuous growth.
Market Trends
There exist several markets rends that can be beneficial to apply to poly Company. First, internationalization is rampant due to the growth of the internet. Companies can interact with their clients directly, through company websites and emails. Hence, ApplPoly can exploit the internet to ensure that it conveys its new products to a large population, as well as help obtain feedback.
Second, most individuals and companies have realized the significance of using materials that are environmentally friendly. The vast environmental awareness campaigns have evoked a feeling of responsibility among this group. Hence, ApplPoly‘s domes are likely to win the hearts of many individuals and companies due to their sensitive nature.
Lastly, most persons, especially in Europe and Japan, want new and attractive products, which embrace modern technology. Hence, this may be a competitive advantage for the company (Spulber, 2007).
Market Needs
Most clients obtain dome-shaped roofs from ApplPoly Company because they want cheap, enduring, and attractive roofs that are environmentally friendly (Carpenter & Karl, 1989). Other clients, especially in the hospitality sector, may require the domes for accommodation purposes. Hence, managers and employees of ApplPoly must ensure that they maintain high-quality products that are appealing and fairly priced.
Segmentation or Possible Target Markets
ApplPoly Company targets individuals, construction industries, and small businesses that need quality and affordable polystyrene foam roofing products, for use or sale, both inside and outside of the United States. Such segments are likely to embrace polystyrene foam roofs since they are environmentally friendly, cheap to maintain, and attractive.
Individuals as a Market Segment
This group consists of persons who intend to use polystyrene foam made roofing materials in their private houses or premises. Most people in Europe, Japan, and the USA prefer to use polystyrene foam roofing materials because they are highly resistant to most environment aspects, such as chemicals in the atmosphere.
Construction Companies as Market Segments
This group consists of corporations that provide building solutions to persons in these countries. Most of these companies would like to receive ISO certification and other international awards for providing building solutions that are sensitive to the environment. For instance, polystyrene foam products have insulation capacity, which saves resources through decreasing consumption of energy. Also, the use of polystyrene foam products minimizes the cutting of trees, for use as a roofing material. Hence, polystyrene foam roofing materials will facilitate such companies in achieving their goals, as they are environmentally friendly.
Small Businesses as Market Segments
There are several small businesses, in the USA, that import polystyrene, foam, roofing materials for sale. Other small businesses in the hospitality sector make use of the polystyrene roofs to make temporary shelters for accommodation purposes. ApplPoly’s dome-shaped roofs are likely to attract such businesses since it is appealing and less costly than other roofing materials.
Table 1 Illustrating Segment Growth.
Target Markets
The focus of the Company will be on external markets covering Japan and Europe, as well as the internal market. Polystyrene gets widely used in Europe and Japan by individual persons and companies in the hospitality sector. The roofing domes created by ApplPoly are environment friendly and appealing, which makes them relevant in the modern world. Other target markets in this sector of the market are small businesses that import polystyrene, as well as construction materials, in the USA.
Both young and old people are likely to buy these roofs. First, the idea of the dome-shaped polystyrene roof is likely to catch the eyes of many young people, since the domes are attractive. Second, old people will adopt the domes because they are friendly to the environment. So as, to reach these people, ApplPoly can use popular magazines, exhibitions, and trade papers. Magazines can be used to reach out to young people and trade papers to the old. Besides, exhibitions can reach out to both groups.
Marketing Objectives
- To expose the concept of dome-shaped roofs which are made from polystyrene foam to the United States, Europe, and Japan.
- To see that potential users accept the new dome-shaped roofs, which get made from polystyrene foam.
Financial Objectives
- To attain sales of $150, 000 in 2012 and &0.5m by 2013.
- To attain a gross margin of over 70%.
- To attain over 15% net income from the domes by the fourth year.
Mission
ApplPoly offers individual home owners, construction companies, and small businesses a reliable, high-quality alternative to conventional building materials. The company offers high-quality polystyrene foam products to its clients, to ensure customer satisfaction. The company’s products are also environmentally friendly as the company seeks to preserve the future for other generations. The company, furthermore, seeks to maintain its prices relatively low to ensure that many people can afford and use their products.
Marketing Strategies
The marketing strategies seek to create awareness regarding the dome-shaped products. The first strategy will be to build several projects for exhibition in the United
States and create additional projects in Europe and Japan. This method will be extremely effective, as the company will be able to demonstrate the applicability of the new ideas behind the project. Also, persons who will experience visual contact with the structures are prone to like them since they have an appealing look.
The second strategy will be to present reports of well-constructed domes in leading magazines (Duane & Michael, 2008; Ferrell & Michael, 2010). The third strategy will be to publish at least two articles per month in industry trade journals. The fourth strategy will be to create a website where the company can display its new products (Courtney, 1997). The company will create a free website where the images of domes and concepts behind them can be illustrated.
Also, ApplPoly’s new products will be tagged with a price label that mirrors savings, when weighed against the actual price. The prices of the polystyrene domes should be incorporated into the advertisement. Therefore, the advertisement should be formed in a way that it announces the original price and the price of sale, after the discount. Also, Preston should articulate the prices of different sizes of domes, in the course of exhibitions. She should remember to mention both the original price and the discounted price, to convince the spectators to obtain the commodity.
Prices should, as well, be posted to the website of the company so that those who open the website can access the prices. Conversely, Preston should use the superiority of the brand name, to sensitize people on the products of the company. ApplPoly has an excellent brand name, as it becomes known for the manufacture of polystyrene foam products that are sustainable and consumer friendly. Preston should realize that many industrialized nations will prefer to use domes instead of wood and cement, as they are friendly to the environment.
Product Analysis
Points of Differences
Using dome-shaped roofs that become made from polystyrene foam reduces construction time, as they just need technology to fix. Hence persons and companies that use these roofs experience large savings, unlike those who use wood and cement. Also, these domes are extremely attractive and environmentally friendly, unlike wood, which leads to deforestation. Also, polystyrene foam domes are cheaper as compared to other roofing materials, such as wood and cement.
Many industrialized nations will prefer using domes instead of wood and cement, as they are friendly to the environment. Also, there are several environmental awareness groups that are advocating for the use of polystyrene foam products, as they are environmentally sensitive. Besides, the government has launched a free website for companies that wish to market their products online. This will serve as a vast opportunity for ApplPoly to market its new products without charge.
Although the domes have undergone some tests that demonstrate they are fireproof, there are no appropriate tests for unconventional building materials. Hence, tests to show that cement and wood are fire proof exist while there no sufficient tests for polystyrene roofs exist. Also, foamed domes lack the impact resistance like that of wood and cement (Eisenhardt, 1990). Again, children may poke holes in the domes, while they cannot poke holes on cement or wood.
Also, the foam board is stiff but can be formed or bonded to itself by heat alone, unlike wood and cement. The board is easy to curve into different shapes as compared to wood and cement. Again, the foam board has excellent and permanent insulating characteristics, unlike wood and cement. It is for this reason that it gets used as an insulator. Finally, the foam board offers a superior surface on which different furnishes may be applied, such as readily available concrete-based stucco that is durable and inexpensive.
Points of Parities
ApplPoly’s dome roofs are fire proof, similar to cement roofs. Thus, houses that use these roofs will be secure from fires. Besides, both wood and polystyrene foam dome-shaped roofs can be used to offer temporal recreational facilities. Moreover, all of them are construction materials.
Table 2 Product Features and competitors.
Brand Analysis
ApplPoly has an excellent brand name. The company becomes popular for the manufacture of excellent polystyrene foam products, such as roofing materials, packaging products, as well as food containers or cups. Most industries, mainly in the construction, hospitality and manufacturing fields, use the products of ApplPoly due to their eminence, as compared to products from other companies.
Also, ApplPoly’s products are preferred due to their low-cost value. The brand maintains a low-cost strategy, whereby all prices become set at the lowest market value possible. The company seeks to maintain its prices relatively low to ensure that many people can afford and use their products.
Besides, the brand becomes recognized for its friendly nature to the environment. ApplPoly manufactures products that are friendly to the environment because the company recognizes the need to preserve the environment for future generations. Last year, the company received an ISO: 9000 certification due to its commitment to the environment. This, also, acts as a competitive advantage, for the company, since most polystyrene companies do not emphasize on the need to preserve the environment, in their activities.
Furthermore, the company offers high-quality polystyrene foam products to its clients, to ensure customer satisfaction. Thus, the brand name of the company can be regarded as well built.
Price Analysis
Points of Difference
ApplPoly must ensure that its polystyrene dome-shaped roofs become priced fairly. Most clients prefer to use polystyrene roofs because of their fair prices (Andrews, 2011). Hence, domes prices must be maintained relatively low, as compared to conventional roofing materials, such as wood and cement.
However, this does not denote that the company should sell its products at a throwaway price. Prices of domes, from ApplPoly, should be a bit higher than the prices of other companies that manufacture roofs. This is because these dome-shaped roofs have more benefits than conventional roofs from other companies.
Besides, ApplPoly’s new products should enter the market with a price label that mirrors savings, when weighed against the actual price. However, the price may be returned to normal after domes gain popularity. Alternatively, prices can be increased, after the domes become popular, relative to the competition.
At present, Atlas Roofing Inc sells roofs that have a length of 20M by15M for $75, and roofs that have a length of 30M by 15M at $85. Also, Austin Foam Products Inc sells roofs that have a length of 20M by15M for $80, and roofs that have a length of 30M by 15M at $90. The prices of these two companies are relatively high.
Moreover, ApplPoly should make domes that are of different sizes and prices. For instance, a dome roof that has a length of 20M by15M can cost $50, while a dome of length 30M by 15M can cost $60. This will enable the products of ApplPoly to compete fairly in the market. Besides, many people will be able to obtain the most appropriate sizes of the dome, depending on function.
Point of Parity
The pricing system of the domes should allow distributors and dealers a rate that is similar or close to the rates awarded to wood and cement dealers. This will make many people to become interested in selling, as well as using the domes.
ApplPoly should adhere to the laws of the government, while setting up the prices, just like other competing companies. The American government regulates most consumer products, and ApplPoly must acknowledge the practice.
Lastly, the prices of ApplPoly should be realistic. This implies that the prices of the domes should not be exaggerated. While we agree that the prices should not be high, they should, also, not be too low, as this can make persons to doubt the quality.
Price sensitivity of the market
The prices of the domes should be mentioned during the advertisement. Thus, the advertisement should be structured in a way that it announces the original price and the price of sale, after the discount. Also, Preston can mention the prices of different sizes of domes, following exhibitions. She should remember to mention both the original price and the discounted price, to convince the spectators to obtain the commodity.
Preston can also pass the message by word of mouth, to friends and other acquaintances. Also, managers and other employees of the company can convey the concept of domes through word of mouth. This will make a vast number of people to have confidence in the product. The website can also serve as a great avenue for price sensitivity. Preston’s goal of sensitivity should be to create a level of visibility, so as, to make a vast population aware of the fair pricing of the company.
Prices should, as well, be posted to the website of the company so that those who open the website can access the prices. Conversely, Preston can use the superiority of the brand name, to sensitize people on the products of the company. ApplPoly has an excellent brand name, as it becomes known for the manufacture of polystyrene foam products that are sustainable and consumer friendly.
Preston should realize that many industrialized nations will prefer to use domes instead of wood and cement, as they are friendly to the environment. For instance, polystyrene foam products have insulation capacity, which saves resources through decreasing consumption of energy.
Also, the use of polystyrene foam products minimizes the cutting of trees, for use as a roofing material. Lastly, polystyrene products do not contain Chlorofluorocarbons (CFCs), which pose an immense danger to the environment. These factors and others make people prefer using polystyrene foam products.
Table 3 Price Structure.
Promotion Analysis
The aim of promotion is to make a height of visibility to augment volumes of domes into abroad trade realm, continuously (Wallace, 1992). The first method that ApplPoly will employ in promotion is the use of demonstration projects in the United States, Europe, and Japan (Hill Gareth, 2007).
This method will be extremely effective, as the company will be able to demonstrate the applicability of the new ideas behind the project. Also, persons who will experience visual contact with the structures are prone to like them since they have an appealing look.
The second method that the company will employ in the promotion will be to expose the concept of domes through accounts of domes, which were built earlier, in main magazines and trade papers.
Also, the company will make use of the company’s website where the images of domes and concepts behind them can be illustrated.
Conclusion
ApplPoly Products got into such a situation because the company did not take adequate measures to market their products. The company also left the task of marketing to Preston alone, because she developed the product. I would recommend that every manager and employee become involved in the marketing of the new product. Also, the fact that the manager of ApplPoly is not ready to invest additional money on Preston’s project demonstrates that the manager does not have trust in the new product.
The manager should support Preston in her novel idea since it seems to be unique, and hence, has a competitive advantage over rivals. Also, we understand that the company has been pressuring Preston, a chemist in ApplPoly Products’ resins laboratory to establish new products that have the potential to create new markets for the company for a long time.
This shows that management recognizes the need for innovation. However, pressuring someone to come up with a new product may not be the most suitable manner to obtain new ideas. The management should make use of other systems, such as marketing and research department, to conduct surveys and suggest ways of enhancing existing products.
It is upon the management of ApplPoly to support Preston financially, especially in her projects and advertisements.
I would recommend that Preston pursues her intentions with diligence, as she is on the right track. She should endeavor to expose the concept of dome-shaped roofs, which are made from polystyrene foam, to the United States, Europe, and Japan, as well as ensure that potential users see and accept the new dome-shaped roofs, which become made from polystyrene foam.
This is because polystyrene becomes widely used in Europe and Japan by individual persons and companies in the hospitality sector. She, also, can focus on small businesses that import polystyrene, as well as construction materials in the USA, while maintaining high-quality products that are appealing and fairly priced.
Most people in Europe, Japan, and the USA are adopting polystyrene foam roofing materials due to their insulation capacity and the fact that they are friendly to the environment. The idea of the dome-shaped polystyrene made roof is likely to catch the eyes of many individuals and industries.
Preston should formulate marketing strategies that seek to create awareness regarding the dome-shaped products. First, she should build several projects to be exhibited in the United States and other projects in Europe and Japan. She can, as well, present reports of well-constructed domes in leading magazines. Besides, she can publish at least two articles per month in industry trade journals. Preston’s last strategy should be to create a website where the company can display its new products.
Preston should realize that many industrialized nations will prefer to use domes instead of wood and cement, as they are friendly to the environment. Besides, Preston can use the website of the company for marketing their products online. However, she must present the domes in a way that will appeal to most persons who visit the website of the company.
Preston, also, must be confident in her products because most people are eager to adopt products that are innovative, as well, as those products that seem to embrace modern technology. Preston’s goal of promotion should be to create a level of visibility to augment volumes of domes into abroad trade realm.
Preston and managers should ensure that ApplPoly‘s polystyrene dome-shaped roofs become priced fairly. Most clients will prefer to using polystyrene roofs because of their fair prices. Hence, prices of domes must be maintained relatively low, as compared to conventional roofing materials, such as wood and timber.
However, this does not denote that the firm should sell its products at a throwaway price. Prices of domes, from ApplPoly, should be a bit higher than the prices of other companies that manufacture roofs from polystyrene foam. This is because these dome-shaped roofs are more attractive than the conventional polystyrene roofs from other companies.
Besides, the manager must ensure that new products enter the market with a price label that mirrors savings when weighed against the actual price. However, the manager may return the price to normal after the domes gain popularity. Alternatively, he can increase prices after the domes become popular, relative to the competition.
Lastly, the manager should ensure that the pricing system of the domes allows distribution and dealers, a fair rate, compared to that offered by competitors so that they may feel motivated. Preston can also pass the message by word of mouth, to friends and other acquaintances. Also, managers and other employees of the company can convey the concept of domes through word of mouth. This will make a vast number of people to have confidence in the product.
The website can also serve as a great avenue for price sensitivity. Besides, the government has launched a free website for companies that wish to market their products online. Hence, Preston can make a website for the ApplyPoly Company, where the company can display its prices without charge. Preston’s goal of sensitivity should be to create a level of visibility, so as, to make a vast population aware of the fair pricing of the company.
Conversely, Preston can use the superiority of the brand name to promote the products of the company. ApplPoly has an excellent brand name, as it becomes known for the manufacture of polystyrene foam products that are sustainable and consumer friendly. Also, the manger and Preston should conduct a SWOT analysis for the company frequently.
This will enable them to monitor growth, through identifying areas of strength weaknesses, opportunities, and threats. The manager, Preston, and other employees should exploit their areas of strength while trying to address their areas of weaknesses. This will make the company be, in a position, to retain its excellent brand reputation, as well as compete relatively well, in the market.
References
Andrews, N. (2011). The Advantages of polystyrene. Web.
Carpenter, G. & Karl, N. (1989). Consumer preference formation and pioneering advantage. Journal of Marketing Research, 26 (3), 285–299.
Courtney, H. (1997). Strategy under uncertainty. Harvard Business Review, 75, 67–79.
Duane, I. & Michael, H. (2008). Understanding business strategy: concepts and cases. London: Cengage Learning.
Eisenhardt, M. (1990). Institutions, institutional change, and economic performance. Cambridge University Press: Cambridge.
Ferrell, C. & Michael, H. (2010). Marketing strategy. London: Cengage Learning.
Hill, C. & Gareth, J. (2007). Strategic management: an integrated approach. London: Cengage Learning.
Spulber, D. (2007). Global competitive strategy.Cambridge: Cambridge University Press.
United States Century Bureau (2012).Industry statistics sampler: NNAICS 326140 polystyrene foam product manufacturing.
Wallace, D. (1992). Creative people at work: twelve cognitive case studies. Oxford: Oxford University Press.
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