rubenmsoto.files.wordpress.com viewSolar. Solar. Solar. Market Analysis. Presented by. CSUMB....

Market Analysis

Presented by

CSUMB

Presented to Carol Davis

Business Marketing BUS306

Cal State University Monterey Bay

Sola

SOLAR COLEMAN MARKETING PLAN 1

Table of Contents

Executive Summary 4

Situation Analysis 6

Market Summary 6

Geographic 7

Demographics: 8

Age Segmentation 9

Life-Cycle Stage Segmentation 9

Income Segmentation 10

Behavior Factors/Psychological 11

Market Needs/ Market Trends 12

Market Growth 13

SWOT Analysis: 14

Strengths 14

Weaknesses 14

Opportunities 15

Threats 15

Competition 15

Product Offerings 18

Keys to Success 19

Critical Issues 19

Marketing Strategy 20

Value Proposition 20

Mission 20

Marketing Objectives 20

Financial Objectives 21

Target Markets 21

Positioning 21

Strategies 22

Marketing Mix: 22


Pricing 22

Distribution 22

Marketing Communications 23

Marketing Research 24

Financials: 25

Break-even Analysis 25

Sales Forecast Analysis 25

Marketing Cost Breakdown 26

Controls 27

Implementation 28

Marketing Organization 28

Contingency Planning 29

References 30


List of Figures

Figure 1: Bar Graph (How Likely to Buy This Product) 7

Figure 2: Bar Graph (What is Your Age?) 8

Figure 3: Bar Graph (Family Size) 9

Figure 4: Bar Graph (Income Levels) 10

Figure 5: Bar Graph (Activities for Using This Product) 11

Figure 6: Line Graph Renewable Electricity by Type 13

Figure 7: Bar Graph New Generation of Fuel 14

Figure 8: Four Ps of Goal Zero, Solar Kit 16

Figure 9: Four P’s of Wagan Tech, Solar E-Power Panel Cube 17

Figure 10: Four P’s of Bushnell, Solar Wrap 400 Solar Power Charger 18

Figure 11: Line Chart Break-Even Analysis 25

Figure 12: Table Sales Forecast Analysis 26

Figure 13: Table Total Fixed and Variable Marketing Costs 27


Executive Summary

Today more people have introduced devices such as smartphones and tablets into their

everyday lives. Despite advancing technology, a problem with most electronic devices is keeping

them charged. Especially while outdoors far from any electrical outlets. The outdoor recreational

industry is one of the largest in the United States and millions of consumers would be interested

in a product that would allow them to conveniently charge devices while outdoors. To address

this market pain, Solar Coleman looks to combine one of the most common pieces of equipment

brought along to outdoor events, the cooler, and combine it with innovative solar charging

technology to keep most small electronic devices charged.

The Solar Coleman is a portable cooler with solar panels that charges small devices

utilizing solar energy. The solar panel will be durable and have a weather protectant coating. The

cooler will have a retractable handle and rugged wheels allowing users to easily transport the

cooler. It will have a universal serial bus (USB) and 12-volt DC outlet. It will have a lifetime

warranty creating peace of mind and promoting buyer assurance.

The main target market consists of people with active lifestyles. After conducting an

online survey we found that the ages range from 18-54 year olds were good candidates. Our

marketing efforts will target the middle class, and higher, which most commonly have disposable

income. We will utilize online marketing resources to inform and educate consumers of the

groundbreaking solution to charge small devices while outdoors.

We plan to position Solar Coleman where everyone who participates in outdoor activities

such as camping or tailgating would want to own a Solar Coleman cooler over a conventional

cooler. To accomplish this, we intend to market the Solar Coleman as an affordable, radically

inventive solution for the active-lifestyle market. This will make the price both appealing for

customers and hard for potential competitors to match. In addition with Coleman’s already

established distribution system through retailers such as Costco, we will make it easy for

consumers to find and purchase the Solar Coleman.

Solar Coleman does not have competitors that currently sell a comparable alternative

however; there are companies which manufacture portable devices that gather the sun’s energy

to charge mobile devices. Solar Coleman is unique in that it offers more features than are being

offered by its competitors. It provides a place to keep things cool as well as keep devices

charged.


The cooler will be sold for $149.99, and offer a limited lifetime warranty. Our initial

research estimates sales of 47,304 units the first quarter, and approaching the breakeven point

at 189,215 units after the first year. We project a 15% increase in sales from customer demand

and increase in technology availability.

Solar Coleman will be sold directly to customers through the company’s website,

catalogs and telemarketing. Most importantly, they will be available on a global basis through

Costco Wholesale and its stores worldwide. Advertising, online marketing, public relations, sales

promotions, and sporting events will receive most marketing efforts. The marketing

communication will include a combination of indirect, direct and personal selling to the targeted

consumer.

Providing consumers with an environmentally friendly, mobile charging solution is a

market need that has not been addressed. The Solar Coleman cooler will conveniently supply

portable power to everyone who loves the outdoors and already use a cooler.


Situation Analysis

Solar-Coleman, an ice chest cooler outfitted with a solar panel, will be part of the outdoor

and recreational industry under the Coleman Company. Coleman Company was founded in the

early 1900s, over 100 years in the industry, a global company with offices worldwide; they

practice operational excellence (linkedin, 2014). Solar-Coleman will provide a practical solution

for people in need of charging small electronic devices while outdoors. Consumers will be able

to use the cooler while going camping, fishing, boating, tailgating, going to the beach, and any

activity that takes place outdoors. Users of a wide range of electrical devices like mp3 players,

phones, GPS or tablets, will be able to keep their devices charged. Charging will allow users to

stay connected with their devices for many purposes like communications, taking pictures,

listening to music, taking notes, checking in with social media, or simply passing time. The

Solar-Coleman is a cooler with a built-in solar panel on the top part of the cooler. It will have a

small converter that transforms the energy from solar to usable energy, via a USB port and a 12-

volt DC output where users can plug in small devices that need to be charged.

Market Summary

In the United States alone, more than 140 million Americans participate in outdoor

recreational activities, an industry worth more than $646 billion (ASLA, 2014). More money is

spent on outdoor recreation in the United States than in other large industries such as Household

Utilities ($309 billion), Motor Vehicles/Parts ($340 billion), and Gasoline/Other Fuels ($354

billion) (ASLA, 2014). Outdoor recreation is often an escape from our interconnected world.

For many Americans use of technology, another growing industry, is quickly becoming

an important part of life. Our social dependence makes it harder and harder to leave behind

technology. Often while people are enjoying outdoor activities such as camping, sporting events,

boating and hiking they are in remote areas far from any electrical outlets. This presents a

problem to keep their devices charged and ready to use. To solve this problem we compared

various different products that are often brought along on outdoor activity and decided ultimately

that a cooler is the best candidate to modify with solar panels. These panels would charge

electronic devices through USB ports used by most portable device manufacturers.

From a survey conducted by our group, this product concept has received positive

feedback by the majority of respondents. People surveyed said they would be moderately likely


to extremely likely to buy this product if it were available in the market today. This market

analysis concludes there is preliminary high demand for the solutions our concept can offer.

Geographic

By partnering with a global leader in camping accessories, Coleman Company, Inc., the

intended geographic segmentation, rather than being divided, would be inclusive worldwide.

Coleman’s existing products are used throughout the world by outdoorsmen and people with

active lifestyles. According to Coleman Company, Inc.:

Our products have journeyed deep in the Sahara desert, and been along on treks all the

way to the South Pole. Coleman lanterns guided aircraft to safe landings in the Andes

Mountains in South America in the 1920s, and helped climbers reach the top of Mt.

Everest”(Coleman, 2014).

In effect, globalization is a key component to Coleman’s continued success which

promises to provide access to the

masses for Solar-Coleman. Our team

recently conducted a simple random

probability sample in which the

product concept survey asked

participants: if the Solar-Coleman

was available today, how likely

would you be to buy this product?

Thirty-seven percent of respondents

were very likely, and 31.25% were

moderately likely to purchase the

Solar-Coleman. This positive data

gives a valuable glimpse into

consumer market research.

Figure 1 Bar Graph (How Likely to Buy This Product

Figure 2 Bar Graph (What is Your Age?)


Demographics

Age Segmentation

In the product concept survey, some interesting results were found. People in the age

group 18-24 accounted for 31.25%, the highest percent of respondents. This was interesting

because our initial estimate figured people

in a higher age group would be the most

interested in the Solar-Coleman. It was

assumed adults with children would be the

most likely consumers. The data indicated

the 35-44 age demographic was second

highest. This survey suggests the younger

age group is the most appropriate group to

position marketing efforts.

The “empty-nesters” group, ages

ranging from 45-54, was also an important

target segment mainly because this segment

continues to live active lifestyles. The 25-

34 age group resulted in a smaller sample

size partially because few of the respondents were fellow students and not indicative of this age

groups overall outdoor interest and active lifestyles. Further targeted research is needed to more

accurately assess the tendency to purchase the Solar Coleman. The last three age groups which

start at age 55 would also be an included segment. These age groups are not considered attractive

market segments due to the level of inactivity associated with them. According to annual data

from America’s Health rankings, people in age groups from 45-65+ account for over 56.20% of

physical inactivity in the U.S. population (America’s Health, 2014). However, Solar-Coleman

would see this target demographic for product positioning because of the high-level income this

age group is typically associated with and not so much as having to do with active lifestyles.


Life-Cycle Stage Segmentation

Most other consumer products cater to specific life-cycle segments. From our in-class

practicum presentation, we illustrated how Beats headphones are marketed to young, hip, and

sound-quality conscious consumers.

Vehicles typically have a specific

target market as well. Vans are

targeted to families with children.

Luxury vehicles are targeted to the

upper-income consumer. Sports cars

are targeted to the younger, male

consumer. Solar-Coleman seems to be

a good fit for all life-cycle stages. The

“families with children” segment

accounts for 65.63% of respondents.

This stage in peoples’ lives indicates

more family outdoor activities are

taking place as opposed to “single” and

“married-no children” segments which account for 34.38% of respondents. The “single” and

“married” family sizes seem to have different types of outdoor activities which also find benefits

in using the Solar-Coleman. This initial data illustrates the Solar-Coleman concept has proven to

have a broad life-cycle segmentation which is relatively even throughout.

Figure 3 Bar Graph (Family Size)


Income Segmentation

Figure 4 Bar Graph (Income Levels)


Income is a major determining factor for Solar-Coleman. Marketing efforts would be

tailored to the consumer with

expendable income. The product

concept survey suggests the income

level from $0 - $24,999 accounts for

23.33% of the market and $25,000 -

$49,999 is 33.33% of the income

segment. These two segments

combined, reflect over half the

population. According to Ben

Casselman and his article, When

Living Wage Is Minimum Wage, he

suggests that most of the low wage

earners have resources to help them

lead active lifestyles. He writes that

“[a] substantial — and increasing —

number of young adults are living

with their parents”(Casselman,

2014). These lower income earners

are prime candidates because often

times, the wages they earn are mainly considered disposable income since the regular bills and

cost of living is paid for by the parents. An example of this are my children, ages twenty-two and

twenty-one. My 21 year old has no job yet drives a Ford Mustang all over town and even buys

friends gifts with my money. She has a small cell-phone repair business, based out of my retail

store location, and typically makes less than fifty dollars a week while going through the

Certified Nursing Assistance program in Salinas. My son works part-time for McDonald’s and

he also drives a Nissan truck and hangs out with all his friends. He makes less than $700.00 a

month but parties like a rock-star. Both of my children put together are way below the poverty

line but my income, regretfully, gives them freedoms that I cannot, and don’t want, to spend

money on. With over 71.2 million memberships in 10 different countries, our retail partner,

Costco Wholesale, is a strong channel that will supply consumers with our product. The affluent

http://fivethirtyeight.com/features/when-living-wage-is-minimum-wage/


http://fivethirtyeight.com/contributors/ben-casselman/

http://fivethirtyeight.com/contributors/ben-casselman/

Figure 5 Bar Graph (Activities for Using This Product)


consumers with incomes of $50,000 and above would also be part of marketing efforts in part

due to Costco’s existing customer base. According to a recent article titled, Tightening the

Beltway, the Elite Shop Costco, in the New York Times by Richard Perle, he writes, ”to its

benefit, Costco has carefully fashioned an upscale-downscale image, and their stores do better in

high-end locations” (Perle, 2007). This comment was in reference to a Costco store which was

strategically located near the Pentagon in the Washington area in Arlington, Virginia. This store

is frequented by and attracts government officials, ambassadors, and military personnel (Perle,

2007). All are part of the higher income population.

Behavior Factors/Psychological

Behavior factors

which are essential to

product success would have

to be broad by definition.

Solar-Coleman would be

targeted to the active-

lifestyle consumer. This

consumer is typically

outdoors and enjoys a wide

range of activities.

Coleman has successfully

focused its marketing

efforts to include outdoor

activities like “hiking,

camping, fishing, hunting,

boating, swimming, four-

wheeling, relaxing, [and] tailgating” (Coleman, 2014). The Solar-Coleman would fit right into

this company’s existing behavioral marketing campaigns. This survey suggests camping,

tailgating, and sporting events would be the most common uses for the concept. Fishing, boating/

skiing, and job site use are strong markets which should be included as well.

Market Needs


Bill McKibben is a Harvard University graduate and an American Environmentalist who

has written a broad range of global warming books. He once said, “There is an urgent need to

stop subsidizing fossil fuel industry, dramatically reduce wasted energy, and significantly shift

our power supplies from oil, coal, and natural gas to wind, solar, geothermal, and other

renewable energy sources. (Brainy Quote)” The situation of the marketplace gap is described in

some detail in which consumers should change their lifestyle from using electricity to using solar

power. The main point is that Solar-Coleman would play a very strong significant factor in the

solar innovation field. The specific benefit this product will have in this industry is to provide a

service for a full variety of customers who are looking for that strong wild actor of portability

this product provides. Gaining this benefit would decrease the necessity of electricity. The Solar-

Coleman provides for their customers who are looking for a long-term effect of change that will

bring them a good beneficial method of solving the trending gap in this marketplace, changing a

customer’s life with their product will give Coleman a chance to innovate their production line.

Market Trends

The Solar-Coleman is heading towards the 21st century where the variable is technology.

The web article “Solar Power Is the Future.Com” gives the public a chance to view this site as an

informative example to understand the idea of solar power.

The article “Solar Power is the Future.Com” states:

The simplest examples of solar energy use can be found in basic tasks, such as using the sun to

dry clothes or food. These days, some homeowners turn to solar home heating or solar water

heating to power their homes. Things like the clothes washer & dryer, heating hot water for the

bath, powering the oven, and of course lighting in the home, can all be run with solar power.

Even outdoor living spaces can be enhanced through the use of solar garden lights!”(Solar Power

is the Future.com)

Outside influences such as the sun improve the day-to-day lives of individuals who rely

on solar power show that there is a trend. The influence that this new product will bring into the

market is a fresh new style of living; Solar-Coleman represents a new direction of growth.

Moving forward in this industry has influenced a new market for consumers who want to be

outdoors with the chance to bring their commodities to make them feel more comfortable.


Marketing Growth of Solar-Coleman

The Solar-Coleman line has the ability to grow through the market in which they gain the

values and services they provide to their customers. These measurements change over time and

the income output will increase the revenue of this company. On May 7, 2014, a web article was

released called the Annual Energy Outlook 2014, stated that, “Solar energy is the fastest-growing

source of renewable generation, increasing by 7.5%/year from 2012 to 2040, almost exclusively

as a result of increased photovoltaic capacity in both the electric power (central-station) and end-

use (customer-sited) sectors.”(Annual Energy Outlook, 2014). Solar power is not only the

support of growing markets, but also Coleman has the necessity to open new doors and increases

the generation of the century more than 7.5% from 2012. The projections of solar power have

given the chance for success in this current market.

Subsequently, another web article named “GreentechSolar stated that, “Solar was the

second-largest source of new electricity generating capacity in the U.S., exceeded only by natural

gas. Additionally, the cost to install solar fell throughout the year, ending the year 15 percent

below the mark set at the end of 2012.”(GreentechSolar, March2014)

Figure 7: Bar Chart New Generation of Fuel


Solar-Coleman will soar through the market gains it will produce. This company’s

production Solar-Coleman will consume the product market as a strong relation of market

growth, but also a chance to increase natural resources.

SWOT Analysis

Strengths

Brand awareness and brand loyalty are strengths for Solar-Coleman. Coleman Company, Inc.

has been a trusted brand since 1905, when W.C. Coleman started the company (Coleman, 2014).

Coleman continues to capture global market share with the emerging technologies and brands

which include “Sevylor® floats and towables, Stearns® life vests, Mad Dog Gear® ATV

accessories, Helium® sports vests and AeroBed® airbeds” (Coleman, 2014). Additionally,

utilizing Costco as a retail partner, Solar-Colman is sure to capture a vast market share of

consumers which align with target segments presented earlier. Distribution would also be

advantageous with Costco’s existing warehouses and store locations.

Weaknesses

One of the weaknesses the Solar Coleman has is the reliance on external suppliers for the

various components needed. Outsourcing allows cost or research and development to be greatly

reduced, maximizing profits, but also potentially exposes a supply shortage. After initial sales


figures, and overall market evaluation, Coleman would be encouraged to consider further

research and solar panel manufacturing.

Opportunities

According to a detailed press release from the Bureau of Economic Analysis (BEA),

recent State Personal Income has been on the rise. The data concludes:

Quarterly data: State personal income growth accelerated to 1.5 percent in the second

quarter of 2014 from 1.2 percent in the first quarter. Personal income growth ranged from

2.7 percent in North Dakota and Nebraska to 1.1 percent in New York and Alaska, with

growth accelerating in 36 states (BEA, 2014).

Due to the growing economy, we expect consumers will continue to seek outdoor and leisure

activities which will prove to fulfill product demand.

Threats

This product is dependent on the availability of solar panels. If solar panel technology

changes, and is determined to conflict with the cooler use and environment, it could have a

negative impact on production and safety. The material used for the solar panels is also a threat

due to possible availability shortages or price fluctuations. Additionally, outdoor activities,

sporting events, and tailgating thrive during a flourishing economy but also decrease during an

economic downturn. An economic downturn would negatively affect sales.

Competition

The Solar-Coleman ice chest cooler is unique in the sense that there is not a similar

product on the market yet. There are however, competitors that offer solar power to charge

electronic gadgets. The Solar-Coleman would have a few major competitors currently in the

market including: Goal Zero Guide, Solar kit; Wagan Tech, solar e-power panel cube; Bushnell,

Solar Wrap power charger which provides a similar solution for consumers in need of solar

charging. These competitors offer a solution to the problem of charging devices while outdoors

or on the go. Goal Zero and Bushnell offers compact on the go solutions for charging small

devices. Wagen Tech offers a bigger product that generates more electricity and allows users to

power bigger items.

Figure 8 Four Ps of Goal Zero, Solar Kit

Goal Zero, Solar kit Product

$99.95-$119.99Price

Sold online and in stores: Costco, Amazon, REI, L.L. Bean, Bed Bath and Beyond, and Fry’s electronics Place

Back up power source, that charges devices, therfor solar charge can come to the rescuePromoting product world wide

Promotion


Goal Zero launched in

June, 2009 and has set

out to empower people

all over the world

(GoalZero, 2014). They

create portable solar

power systems, ranging from solar panels, portable power packs, generators, to chargers and

accessories (Crunchbase, 2014). The Goal Zero solar panel kit is a small lightweight and

compact panel allowing portability. This provides a feature of being able to plug in devices using

USB while having the capability to charge batteries. Additionally, this product has the capability

of charging two items at the same time. Consumers have complained that the iPhone, iPad, and

other apple devices are not able to use this accessory to charge devices (Costco, 2014). “The

smart-phone industry includes fifty six percent of the U.S. market. Apple's iPhone accounts for

twenty-five percent of the share” (appleinsider, 2014). Goal Zero is losing out on twenty-five

percent of potential customers.

Figure 9 Four Ps of Wagan Tech, Solar E-Power Pane Cube


Wagan Tech has five portable solar panels; the system is large and effective. However, it is a

bulky box that collects and converts the sun’s solar power into usable energy. It is able to charge

larger items including charging a car battery, laptops, . Additionally, it will charge a power

impact drill for five hours, and power up a television, (Home depot, 2014). The Solar E-Power

Panel Cube offers a limited manufacturer warranty of two years (Home depot, 2014). As a

Wagan Tech, Solar E-Power Panel Cube

Product

$949-$1,099Price

Sold online and in stores: Home Depot, Target, Amazon, Best Buy, Costco, Walmart, Cabelas Place

taking technology on the go. Promotion

Figure 10 Four Ps of Bushnell, SolarWrap 400 Solar Power Charger


consumer, paying close to $1000 for a gadget, the expectation is that it must be a durable

product, yet the manufacturer fails to back its product after two years. The customer must

register the product within 30 days in order to acquire the manufacturer warranty (Home depot,

2014).

Bushnell, Solar Wrap 400 Solar power charger, has a flexible solar panel that unrolls when the

user requires collecting solar energy; once done it rolls back up. It comes in a durable hard case

and it is small and compact; this feature makes it ideal for charging smaller electronic devices

like mp3 players, cameras, and phones (REI, 2014). According to customer reviews they were

dissatisfied with the charging rate and that the battery capability was low (REI, 2014).

Product Offering

Solar-Coleman will provide a solution to charge devices as well address consumer needs

like holding items such as beverages, food, or whatever the consumer decides to keep cool. It

will have rugged wheels and a retractable handle allowing users to pull the cooler in a range of

terrains and take it to whichever destination they desire. It will generate enough power to charge

small devices. Users will have the freedom of being mobile and being able to charge their

devices while being outdoors away from electrical power outlets.

Bushnell, SolarWrap 400 Solar Power ChargerProduct

$180-$199.99Price

Sold online and in stores: REI, Amazon, Ebay, Walmart, Cabelas Place

efficent and fast generating energy from solar power Promotion


The Solar-Coleman will offer a compact durable weather-resistant solar panel coating on

the lid of the cooler. The solar panel will “consists of the silicon semiconductor surrounded by

protective material in a metal frame” that will gather energy from the sun’s rays (madehow,

2014). The lid will have two cup holders allowing the user to have an area where beverages can

be placed. The solar panel will have a life-time warranty; it will be built to last, creating peace of

mind for the consumer. The cooler assembly will have a limited lifetime warranty as well. A

universal serial bus (USB) and a 12-volt gear outlet will allow users to connect any device using

a USB cable. It has a portable rechargeable battery pack allowing the user to save the power

generated by the solar energy allowing customers to use during the day or at night. The primary

building material which will be used for the cooler will be polyethylene. It is the same material

that Coleman currently uses for most of its coolers. Solar-Coleman will create peace of mind

knowing there is a power source that can power their devices while enjoying the outdoors.

Keys to Success

In order to capture a large amount of market share in the cooler business, we decided to

partner up with the Coleman brand because they have a long standing reputation with quality

coolers. Consumers instantly recognize the Coleman brand and are more willing to try out a

cooler that is capable of recharging electronics as opposed if the same exact product was

manufactured by another company with less of a connection to coolers. Along with the Coleman

brand comes its established distribution network. Coleman coolers are carried by every retailer

that carries coolers, such as some of the United States’ largest retailer such as Costco and

Walmart. With these well-established retail partnerships, the Solar-Coleman will reach a very

broad market segment and large percentage of potential customers. The biggest key to success

for the Solar-Coleman will be that it will be the first of its kind out on the market. This will be a

brand new product that will appeal to anyone who does any kind of outdoor recreational activity

and Coleman will be the only company making it.

Critical Issues

As with most new products there are many issues that could potentially stop the Solar-

Coleman from succeeding. The first being that the product is heavily supplier dependent as we

are purchasing the solar panel’s components from a third party company and since they control

the price of the parts. Not having the right supplier could affect our production, profitability,

reliability and retail price.


Secondly, since this is a new product, the market will be wide open for competitors to

start making their own version of this product. This will potentially reduce some of the product

demand. Most new products are open to imitators as they try to cash in on the wave of success

experienced by the product. It is noted that having a product copied can be financially

devastating to the one who invented it (HG, 2014).

One last issue for the product could be that the economy fails and people would not have

as much income to spend freely on products used for recreational purposes. The outdoor

recreational industry may be one of the largest in the United States but if money begins to

become an issue it will be one of the first areas consumer cut spending on. Spending in the

United States is still 3.5 percent below the pre-recession peak (Coy, 2014).

Marketing Strategy

Value Proposition

As society becomes more and more connected every day, people are carrying their

smartphones and tablets everywhere they go. In the United States 58% of American adults have a

smartphone and 42% of American adults own a tablet computer (Pew Research, 2014). That is a

large segment of the U.S. population that is using these devices when they participate in outdoor

recreational activities. This demographic makes up for an estimated 49 percent of the American

population in 2012. They often find themselves in situations devoid of charging solutions

(Outdoor Foundation, 2013). Solar Coleman seeks to address this problem by taking one of the

most common pieces of equipment used in outdoor recreation, a cooler, and equipping them with

solar panel charging components for the convenience of the consumer.

Mission

Solar Coleman seeks to provide outdoor enthusiasts everywhere a high quality cooler

with the convenience of solar powered charging technology to allow customers to keep their

important electronic devices charged in locations that usually offer limited options to charge

such devices.

To further simplify our mission statement to the end consumer we intend to use the

slogan “Be Cooler and in Charge”, which simplifies the objective of what the product is trying to

deliver which is to keep things cool, and charge electronic devices.


Marketing Objectives

We want to introduce this brand new product to increase Coleman’s sales by creating a

market for solar panel equipped coolers. Our objective is to reach every outdoor enthusiast or

anyone in general that uses a cooler to keep things cold while enjoying outdoor recreation

activities. As this is a brand new product we are introducing to the market, we want to make sure

we position our product’s advantages and value clearly across to the consumer. This product will

bring brand awareness to the Coleman brand. This product is something new and exciting, and

will certainly catch the attention of consumers as we plan to market this product extensively

through various outlets. It will put the Coleman name back in people’s heads and bring positive

press.

Financial Objectives

In regards to the product itself we hope to have it at a very reasonable price, something

that the consumer would not think is more than what it should cost. We plan on making the cost

of our product as close to possible to being the lowest price of a cooler and solar panel charging

technology combined meaning that the price of the cooler should be close to the price of those

parts combined. As we are working closely working with Coleman we can get the price of the

coolers as low as possible. As for the solar panels and charging components we hope to find a

supplier that can offer us those components at the lowest price possible as well.

Target Markets

Solar Coleman aims to reach anyone who uses a cooler, but for an example we want to

target a certain demographic. This demographic would include middle class individuals who do

like to spend a lot of free time outdoors. According to our own survey that we conducted, the age

group most interested in our product would be the 18-34 age group. Also to have a specific target

in mind we aim to market especially to potential customers living in places close to popular

outdoor recreational hotpots, California for example has many of the United States top

recreational spots ranging from popular parks such as Sequoia National Park, Lake Tahoe, and,

Yosemite National Park to several major stadiums such as Levi’s Stadium and Qualcomm

Stadium where tailgating is very popular. All these locations are places that you would be likely

to find someone using a cooler in (Touropia, 2014).

Positioning


We plan on marketing the Solar Coleman as a “more for less” product. Knowing out

target demographic, we want to position our product carefully. As our goal we hope to position

the Solar Coleman into a position where everyone who uses a cooler would want to have our

Solar Coleman instead. We want consumers to prefer the Solar Coleman and never want to just

have a regular cooler without solar panel charging technology ever again. Later down the road

we should expect for competitors to arise, and offer their own solar panel equipped coolers. The

“more for less” approach would help us in this regard by already trying to beat out the

competition price-wise even before they come out.

Strategies

The strategies of Solar Coleman will be to focus on the ease of charging devices while out and

about using solar energy. The first step is to reach out to our target market, active 18-54 year

olds, with mid-to-high and disposable incomes interested in trying new and innovated products.

Emphasizing the more for less value proposition, all the benefits that the Solar Coleman gives

consumers at a low price, compared to other manufactures that offer solutions to charging

devices. This will appeal to this group because it offers a great life-time warranty, provides a

solution to charging devices while outdoors, creates a secure and ease of mind to the consumer.

Marketing Mix

Pricing

Solar Coleman will be priced at 149.99. When determining the price, we considered two

factors. We looked at the average cost that Coleman charges for their coolers, $49.99(Coleman,

2014), then we looked at what Goal Zero is charging for their solar portable charging solution

and their price, ranging from $ 99.95-119.99. At the price of $149.99 it will be very attractive to

our targeted market. Utilizing the value proposition of “More for Less” maximizes the benefits

the Solar Coleman offers both economically and functionally.

Distribution

The distribution channels will include using a conventional marketing channel, “one or more

independent producers, wholesalers and retailers, each a separate business seeking to maximize

its own profits” (Kotler & Armstrong, 2012, p.345). We will have our product available directly

through manufacturer Coleman (business to consumer), and also available in stores (business to

business) thus distributing through multiple channels. Solar Coleman will obtain raw material

and parts needed to manufacture the cooler from suppliers as well as manufacturers. Solar


Colman will be available through Coleman’s website, catalogs, and a telephone so that

consumers will be able to directly obtain the product from straight from the manufacturer. We

will partner up with Costco as a reseller of our product initially. Costco was chosen as the store

to distribute our product because they are well established, trusted by consumers, and they have

customers with mid-to-high disposable incomes. According to Costco’s company profile, there

are 663 warehouses and the following store locations worldwide:

Areas of operation: 468 locations in 43 U.S. States & Puerto Rico;

88 locations in nine Canadian provinces;

26 locations in the United Kingdom;

10 locations in Taiwan;

11 locations in Korea;

20 locations in Japan;

6 locations in Australia;

33 locations in 18 Mexican states;

1 location in Spain

Store Location Information courtesy of Costco Investor Relations, (2014).

Marketing Communications

Advertising, online marketing, public relations, sales promotion, events and experiences

will be our main ways of communicating. We will inform our consumers and gain product

recognition among our market. Creating an excitement regarding the new and innovated solar

Coleman cooler will attract many to recognize and will lead to them trying our product.

Conducting online marketing we will have a web-site, online social media, mobile

marketing, e-mail, online ads and promotions. Through our website consumers will be able to

provide information regarding our product as well as options to purchase the Solar Coleman. We

will utilize social media, (Facebook, Instagram, Tweeter, Pinterest, Google+ and ECT.) to

promote, advertising, public relations, direct marketing, viral marketing, offer sales promotions,

contest, and to promote events the Solar Coleman cooler. Using social media we will share

pictures and demonstrate our product works also have users share their experience with Solar

Coleman cooler. Our target markets are people with an active lifestyle that have small devices

that need charge, helping them stay connected with social media. Mobile marketing will focuses


on-the-go consumers utilizing their mobile phones, smart phones, and tablets to engage

customers and help them shop. We will utilize e-mail as a communication tool and use it as a

direct marketing medium. Solar Coleman online ads will appear as consumers are browsing the

internet they will appear in search-related ads.

We will make a short video demonstrating how our product works and launch it through

YouTube focusing on introducing consumers to the product. According to Adroit Digital “68%

of respondents would be more influenced by a short video than a text-based ad when seeking

new product information” (AndroitDigital, 2014). Our consumers would most likely search for

the product on YouTube and watch a video verses traditional reading material. Adroit Digital has

found that the traditional television has lost popularity among the United States and YouTube is

now more popular according to a survey of 2,000 people (AndroitDigital, 2014). Coleman

Company attracts a wide range of consumers therefore we would also launch a traditional

commercial, making it available through YouTube as well as the television.

We would build public relations using the media to promote press releases. Initially to

inform our audience of new and innovated product that will be coming out into the market. Also

to keep consumers informed of promotions and contest that we have going on.

We will launch a sales promotion issuing a $10–off coupon, on the third year once our

sells begin to decrease, and really focuses on the savings that the consumer will be getting.

Among a study conducted by Dr. Paul J. Zak, Professor of Nero-economics, Claremont Graduate

University, people who receive $10 coupons, were happier with their purchases, have 38 percent

higher Oxytocin levels, 32 percent had calmer breathing rates, 5 percent slower heart rates, this

helps show how there was a decreased in stress (Medical Post, 2014). Making the coupon limited

after the third year on the market will increase sales by attracting consumers, by creating a sense

of urgency and really stressing the savings.

Events and experiences that Solar Coleman will also focus on will be sporting events and

trade shows giving us a chance to demonstrate how our product works. To inform more

customers of what our product is and gain recognition among consumers. We will make working

displays to demonstrate how our product works in stores. We will appear at sporting events,

concerts, festival and have a working display of our product and share how our product works

and for them to be able to gain hands on experience with our product.


Marketing Research

Initially Solar Coleman began by finding a solution that addressed charging small devices

while outdoors. Primary research began by conducting an online survey through survey-monkey

among the general public which helped us focused on whom our targeted market would be. The

survey provided useful information on demographics, age, geographic, income, activates and

interests of the general public. Our research included online- and textbook-research on utilizing

solar rays to conduct energy, and finding a product that would generate enough energy to charge

small devices. Utilizing online research, textbook and our online survey the majority of our

information was found.

For ongoing marketing research Coleman will utilize Costco Wholesale’s vast customer

data base to target customers which fit our market segment. Additionally website and social

media will provide vital information on customers’ interests, lifestyles, and tendencies. This

information will be a guiding light for future marketing efforts. Furthermore, benefiting from

Jarden Corporations vast resources, Coleman’s in-house Market Research, Promotions, and

Marketing Strategies departments will focus marketing efforts on the most attractive potential

consumer.

FinancialsBreak-Even Analysis

The following table is a projected break-even point, $10,153, for the cost of marketing,

both fixed and variable, for the Solar Coleman. Coleman Company will break even within the

first year of sales with 189,215 units sold.


Figure 61: Break-Even Analysis

Sales Forecast AnalysisThe Sales forecast table takes into consideration the distribution excellence of Costco

Corporation and its 657 locations worldwide. For first quarter sales, calculations were made to

supply all Costco locations with an introductory two month supply, or 47,304 units. Sales would

be promoted by all the various advertising strategies implemented. Second quarter sales would

replenish some of the sold product and increasing sales for an additional month supply of 23,652

units. For the third quarter sales figures, Costco locations would receive an additional two month

supply of 47,203 units. Fourth quarter sales, along with market buzz and customer demand,

would increase to a three month supply of 70,956 units. First year sales are expected to reach

189,216 units. After the first year, we expect a 15% increase due to emerging technology

availability and increased customer demand. Third year sales are expected to decrease to 12%,

due to market saturation and competitive firms seeking to enter the market.

Figure 17: Sales Forecast Analysis

Marketing Cost Breakdown

1ST. QUARTER 2ND. QUARTER 3RD. QUARTER 4TH. QUARTER 1 YEAR 2 YEAR 3 YEARUNITS 47304 23652 47304 70956 189216 217598 243710

149.99$ 149.99$ 149.99$ 149.99$ 149.99$ 149.99$ 149.99$ SALES 7,095,126.96$ 3,547,563.48$ 7,095,126.96$ 10,642,690.44$ 28,380,507.84$ 32,637,584.02$ 36,554,094.10$

$-

$5,000,000.00

$10,000,000.00

$15,000,000.00

$20,000,000.00

$25,000,000.00

$30,000,000.00

$35,000,000.00

$40,000,000.00

1ST.QUARTER

2ND.QUARTER

3RD.QUARTER

4TH.QUARTER

1 YEAR 2 YEAR 3 YEAR

Mar

ketin

g Do

llars

Total Sales

Break-Even Analysis

TOTAL FIXED AND VARIABLE MARKETING COSTS SALES

1ST. QUARTER 2ND. QUARTER 3RD. QUARTER 4TH. QUARTER 1 YEAR 2 YEAR 3 YEARUNITS 47304 23652 47304 70956 189216 217598 243710UNIT SALES PRICE 149.99 149.99 149.99 149.99 149.99 149.99 149.99SALES 7095126.96 3547563.48 7095126.96 10642690.44 28380507.84 32637584.02 36554094.1

SALES FORECAST


The following table illustrates both annual fixed and variable marketing costs associated

with the Solar Coleman. Coleman Company is wholly owned by Jarden Corporation which has

“over 120 brands which primarily focus on Outdoor Solutions, Branded Consumables and

Consumer Solutions”(Jarden, 2013). With annual gross sales totaling $2,724.4 million, it is

estimated that Coleman brand accounts for 4% of the revenue, or $108.976 million. Of this

amount, it was calculated that the typical marketing budget is estimated at 20% of gross sales

however, the average 20% marketing budget is spread across all the company product offerings.

We chose to only allow 10% of gross sales, or $10,897,600 because it is a new and innovative

product that will launch on a global scale. If the Solar Coleman was to be marketed solely in the

United States, our marketing figures would have been greatly reduced. The strategic alliance

with Costco allows the Solar Coleman to be sold and available worldwide.

Figure 18: Total Fixed and Variable Marketing Costs


Controls

Solar Coleman will be keeping track of all of the customers that they talk to during

events, to evaluate how effective these events are in promoting their product. Solar Coleman will

look at the results of e-mail online marking and evaluate the effectiveness of those techniques by

evaluating how many people bought the product through an e-mail link. Solar Coleman will keep

track of what consumers have to say about their product through social media in order to keep an

innovated product, based on customer feedback will implement changes as needed. Solar

Coleman will monitor the geographic region and population that are purchasing their product, so

that they can implement their products in store in those regions. Solar Coleman will be analyzing

what types of people are purchasing their product, to evaluate if changes need to be made in the

marketing approach or if we are targeting the right consumer. We will evaluate our 1st quarter

sales goals to actual and see if we need to implement any changes to our marketing strategy. To

meet our sales goal of 70,956 to meet our breakeven point, we will rely heavily on online

marketing, public relations, word-of-mouth, and events.

Implementation

To make the Solar Coleman a reality, we need to find a partner to provide Coleman with

the components need to equip the coolers with the solar panels and charging parts. We need this

manufacturer to provide us with the lowest possible price for the components to keep the end

price of each cooler as low as possible to be more appealing to the consumer.

After we get a finished product we plan on conducting pilot program testing and getting

initial feedback from consumers through introductions at trade shows and displays in stores. This

will allow us make changes to the product as needed according to the feedback before launching

the product worldwide.

Once we get a finalized version of the Solar Coleman we plan on beginning mass

production on the product and immediately launching it through Coleman’s distribution network

including retailers such as Costco as well as selling it online through Coleman’s site allowing

customers to buy it directly from us while cutting out the middleman.

Marketing Organization

The Coleman Company marketing department consists of two primary groups that will

ensure Coleman’s success in locating the weaknesses and strengths of the product.


The Marketing managers responsibility is to direct the marketing approach that will

include messages to website articles that will advertise Solar Power Coleman. This will target

audiences who are interested in this product. The manager will be in charge of reports that will

manage programs.

A Marketing Researcher will utilize market researchers to find information about a target

audience for Solar Power Coleman to find but also find competitors in the market. The market

manager will find tools to such as surveys, groups that will find the focal point of information

that can help Solar Power Coleman succeed in this current market. “Marketing Communication”

Contingency Planning

Solar Power Coleman contingency planning may have a risk of losing key employees

damage to production, and failure in the quality of the product. We need to make sure that we

fulfill all requirements of all regulations so we many not encounter any legal actions. In our

contingency planning we need to address all business-critical operations, identify risks,

prioritizing risks and we will develop a risk impact and probability chart. This will help us to

balance and analyze any foreseeable risks that can impact our company and to have the essentials

to survive in case of any problems arising. The planning can provide solutions for any

unexpected events that can hurt the company because consistency will be very important

because following through with the plans will insure the company that we are doing our due

diligence to protect the our assets. The contingency plan has to have a: goal, time periods,

implementing the plan, keeping the plan simple, being able to decide which plan to implement

at the time of need, fulfilling everyone’s needs, how will the plan be successful, including

standards operating procedures, manage risks and identifying operational inefficiencies.


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