THE BEACH CARRIER Mary Ricci has a new product concept The B

THE BEACH CARRIER Mary Ricci has a new product concept, The Beach Carrier, that she is ready to bring to market. Ricci is creative, optimistic, enthusiastic, flexible, and motivated. She is willing to put substantial time into developing and bringing The Beach Carrier to market. Although she lacks capital, Ricci is unwilling to license or sell the pattern to a manufacturer; she is determined to maintain control and ownership of the product throughout the introduction and market penetration phases. Ricci believes there is a significant amount of money to be made and refuses to sell her product concept for a flat fee. THE PRODUCT The Beach Carrier is a bag large enough to carry everything needed for a day at the beach, including a chair. When empty, the bag can be folded down to a 12-inch by 12-inch square for easy storage. The bag’s 36-inch by 36-inch size, adjustable padded shoulder strap, and various-sized pockets make it ideal for use in carrying chairs and other items to the beach or other outdoor activities, such as concerts, picnics, and barbecues. The bag can also be used to transport items, such as ski boots, that are difficult to carry. Manufactured in a lightweight, tear-resistant, fade-proof fabric that dries quickly, the bag will be available in a variety of fluorescent as well as conservative colors. COMPETITION Currently there are two competitive products sold online that Ricci felt would compete with The Beach Carrier. The first one, found at www.shadeusa.com, is the “Caddy Sack” and is advertised as a backpack-type 473 product that can hold a beach chair, an umbrella, a boogie board, and even a small collapsing table. There is also an outside pocket for a towel, a snorkel, or fins. It is available in three colors and is priced at $16.95. Ricci purchased one of these and felt that it would not hold all the items advertised at one time. The chair had to be very small, and room for extra beach accessories was very limited. This item was ideal for someone biking or walking to the beach with gear for only himself or herself. The second item is called the “Wonder Wheeler” and can be found at www.4thebeach.com. It looks similar to a two-wheel shopping cart that might be used to carry purchased groceries while walking home from the store. This product is advertised as having oversized wheels; it weighs less than 10 lbs. and folds up easily. It can hold a significant amount of beach gear, such as multiple chairs, an umbrella, a cooler, beach towels, and toys. It has a list price of $59.99, and Ricci felt that even with the advertised oversized wheels it would be cumbersome to maneuver on the sand. Its high price was also felt to be a negative for many consumers. MARKETING RESEARCH Ricci commissioned a consulting company to perform a feasibility study for the product, which included a demographic profile, cost estimates, packaging recommendations, and a patent search. The patent search revealed the above-mentioned products and a chair that could be folded and carried as a small tote bag that could also hold a few small beach items. None of these were felt to be a threat to Ricci’s product, and she was optimistic that a patent could be obtained. A focus group was used to determine potential consumer response. Results of the focus group indicated that several features of the product should be modified. For example, the material was perceived as durable; however, the fluorescent color was see-through and considered “trendy,” lessening the perceived quality of the bag. The size also represented an issue, as the bag was perceived as much larger than necessary. MARKET POTENTIAL People who use suntan and sunscreen products have been identified as the primary target market for The Beach Carrier. Research indicates that 43.9 percent of the adult U.S. population, or 77,293,000 people, use suntan and sunscreen products. Of these, 57.8 percent are female. Assuming that women are the primary purchasers of beach bags, the potential market is estimated at 44,675,000. Beach bags are replaced every three years. The primary market for suntan and sunscreen products is described in Exhibit 1. The marketing share objectives for the first year of The Beach Carrier’s sales have been determined based on the following assumptions: People who use suntan and sunscreen products represent the market for The Beach Carrier. Most men do not buy beach bags; consider women only (57.8 percent of population). Women buy new beach bags every three years on average; that is, one-third will buy a new bag this year. Based on these assumptions, the unit sales needed to achieve market share objectives of 1, 2, and 5 percent of the total market during the first year of The Beach Carrier’s sales are shown in Exhibit 2. Ricci is targeting 1 percent of this potential market. Regional market share objectives can be developed from the same data as seen in Exhibits 3A and 3B. STRATEGY Ricci investigated several methods of marketing The Beach Carrier, including selling it in upscale (i.e., Bloomingdale’s) or discount (i.e., Wal-Mart) stores, licensing the product concept to a manufacturer, selling the idea for a flat fee, selling the bag to corporations for.

ESSAY QUESTIONS

1. What is the nature of the product? What are its strengths and weaknesses?

2. What are the limitations to the assumptions Ricci has made in determining the market potential? What risks do these present?

3. How can Ricci protect her product design?

4. What are the pros and cons of the mail order marketing strategy? What are the pros and cons of alternative distribution methods?

5. What are some of the manufacturing issues Ricci will face?

6. Is the financing sufficient to fund the roll out of the Beach Carrier as planned?

Solution

1. What is the nature of the product? What are its strengths and weaknesses?

The Beach Carrier launches new a bag that is big enough and carries all almost all things that are required during the day that we spend at the beach; it is very lightweight and durable. A chair is also included with it. It has adjustable straps and it has different size pockets.

Strengths:-

• Unique design,

• It is light weighted and tear proof

• It is made of quick drying fabric

• Available in bright as well as in sober colors also while other similar items are available in traditionally three colors.

• Available in affordable prices as compare to others

Weaknesses:

• Duplicated products are easily available

• “Perceived need.” is also their big week point

• Products features are become another weak point because its size is big and it is light-weighted to so, when the bag is filled with things like a chair and other items it becomes bulky and heavy weight.

• The company experience is very limited in this field

• They had limited financial resources

• Due to colors and material it becomes a see-through beach carrier so people is considered it a trendy product that decrease the perceiving quality of the product

• Wrong strategy of targeted customers

• Heavy investment on advertisement

2. What are the limitations to the assumptions Ricci has made in determining the market potential? What risks do these present?

Ricci made normal but popular assumptions like people like a big thing. But when we filled it with things it becomes heavy so that it is difficult to manage.

• Environmental issues and risk of skin cancer create troubles in the success of their product.

• Weather is also a key player here because it determines the number of people who went to the beach.

3. How can Ricci protect her product design?

The Beach Carrier is easily copied so the company has to protect their patent. Patent filing is very expensive; with the help of minor modifications company can improve their quality level.

4. What are the pros and cons of the mail order marketing strategy? What are the pros and cons of alternative distribution methods?

Mail order is directly reached the consumer\'s hand and homes so the level of margin is very high and the level of risk is very low. Ricci can terminate its manufacturing and unload their inventory quickly. Level market penetration regarding mail order is very limited.

The alternative distribution methods are

Ø Retail outlets

Ø Arrangements related to management

Ø Selling methods

Ø Mail orders

5. What are some of the manufacturing issues Ricci will face?

Ricci faced issues like the company is only supply labor and they have limited capital equipment they just give raw materials and distribute their finish product