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L'oreal Case Study

Essay by review  •  December 5, 2010  •  Case Study  •  2,414 Words (10 Pages)  •  1,119 Views

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Recognizing the increasing rate of obesity in both children and adults Effortless Innovations, was founded with the goal of decreasing the obesity rate of both children and adults by providing quality exercise equipment for both children and their parents that promote physical activity both indoors and outdoors. Due to the recent increase in the popularity of video games, our company is forced to compete with them in order to make our products more appealing to our target market.

It is a trampoline that is surrounded by a protective covering to prevent accidental injury. The jump-o- line also has a carb counter as well as a CD player featured on the side so that you can keep track of how much fat you are burning as well as have music to entertain yourself. The jump-o-line is available in different sizes the standard being 12 foot but 10 and 14 foot also available.

We would be targeting parents as well as children. The jump-o-line would be to promote parents and children exercising outdoors together. We would try to make this product as affordable as possible in order to encourage its usage by people from every economic background. One demographic factor that we are taking in to consideration is age; the group that we are targeting is children ages 8-13. We would be targeting the southern and western states because of their warmer climate, which makes our product ideal for outside fun for the entire family.

Children and Parents are increasingly overweight; this would promote physical activity as well as encourage parents and children to play, interact and exercise together. Consumers of all races as economic classes could benefit from this product. However, we would be targeting the individuals and families in the working class.

The trampoline is a product that is already in existence but we believe that with a few minor changes (CD player and carbohydrate counter) the Jump-o-line will boost the popularity with children. The major competitors to the Jump-o-line are the other trampoline providers such as:

1. 38" Mini Trampoline available at Goods and Deeds for $29.99

2. Jumpking 15' Trampoline and Trampoline enclosure available at Elite Deals for $549.95

3. Land Trampoline 12'available at KB toys for $199.99

4. Trampoline plus Enclosure Combo available at JCPenny for $299.99

5. Gaiam Trampoline- Yoga Yoga Gear available at Wal-Mart for $99.95

All of the current competitors sell the idea of fun and excitement. However, the Jump-o-line offers much more and in some cases a more reasonable price. GROUP NAME believes that the Jump-o-line will take over the industry by making the trampolines in existence now unwanted and outdated.

Product analysis and positioning-

Jump-o-line trampoline offers a built in CD player and carbohydrate counter. The Jump-o-line is offered in 10, 12, and 14 feet.

Target market 8-13 yrs

The Jump-o-line will be advertised across the United States. However, it will target the southern and western states year round because of the warmer climates.

Jump-o-line will be advertised in the following locations:

1. Magazines

2. Newspapers

3. Television commercials

Jump-o-line will be sold in the following locations:

1. Toys R Us

2. KB Toys

3. K- mart

4. Wal-Mart

5. Target

Effortless Innovations plans to position the Jump-o-line in places where other trampolines are already offered. By doing this Effortless Innovations plans to draw the attention away from the other competitors by offering much more for you money.

As always, we depend on newspaper advertising as our main way to reach new buyers. As we change strategies, however, we need to change the way we promote ourselves:

* All advertising has to emphasize the differentiation point rather than price or straight-on price-only competition with the chains. We'll be developing a "now what do you do" message to build up the target market's need for an information technology ally as opposed to the large chains reputation as box pushers without support or service behind the products.

* Our collaterals have to sell the company, not the product. Why work with Effortless Innovations?

* We must radically improve our direct mail efforts, reaching our established customers with training, support services, upgrades, and seminars.

* It's time to work more closely with the local media. We could offer the local radio a regular talk show on fitness equipment for small business, as one example.

* We need to sell the company, and the product. We sell Effortless Equiptment, not the Jumpaline.

* We have to sell our service and uniqueness. The product is like the razor, and the support, training, and seminars are the razor blades. We need customize are product to what they really need.

The Yearly Total Sales chart summarizes our ambitious sales forecast. We expect sales to increase from $1.3 million last year to more than $5 million to more than 10 million in the last year of this plan.

For Financial graph details see Appendix I.

The important elements of the sales forecast are shown in the Total Sales by Month in Year 1 table. The product sales increase to about $7 million total in the third year.

See appendix 1.2 for graph

Unit Cost Forecast

Unit Sales 2005 2006 2007

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Jumpaline 1,000 1,100 1,310

Business

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