Strategy of introducing a new product into a new market category

Abstract

A new legislation has been introduced by the Dutch government, requiring the outdoor units of ACs and heat pumps to produce no more than 40 dB at your parcel border. In many cases, sound reduction is needed to meet this new requirement.

To reduce this noise, a sound reducing enclosure can be placed over the unit. Van Cappellen Sound Solutions has developed such a product called the Brockx. This company offers products for noise and vibration control. At the core of their business however, the company provides services in the maritime sector. They measure, model and predict noise and vibrations for luxury yachts. Their expertise in the acoustic area, combined with their innovativeness and the new development of the sound legislation has led to the development of the Brockx.

The problem that this project tries to solve, is how to continue with this product. No strategy has been developed yet, and not much is known about the market or how to conduct marketing. Van Cappellen can be classified as a small-medium company (SME), which also needs to be taken into account. To solve these problems, a structure has been created which is shaped by three chapters: SME marketing, 4C-analysis & marketing mix.

The chapter SME Marketing is intended to find out whether the situation of Van Cappellen is unique, what characterises small companies such as Van Cappellen, and how marketing is conducted. Through literature research and primary research it was found that similar situations are recognised among other SMEs. Three themes were also found which characterises SME marketing: networking, customer engagement & digital marketing.

The 4C-analysis consists of competition, company, context and consumers. The main conclusions are that the Brockx can differentiate from its competitors by being the enclosure that is of high quality while offering the perfect balance between sound reduction and size and weight. Next, the company should use its reputation in creating a brand image, to differentiate among other acoustic companies. Context factors such as the growing market of ACs and heat pumps and the sound legislation indicate that the market for sound reducing enclosures will increase. Finally qualitative and quantitative research has been conducted to find out what consumers find important. Selling the Brockx in cooperation with a wholesaler is considered the most viable option, as they have all the required logistical resources. Consumers' attitudes towards the Brockx are positive, as it provides the most sought after benefits. With this information a market positioning has been determined.

Continuing with these findings, the marketing mix is determined by filling in the 4P’s: product, price, place & promotion. The ‘product’ chapter describes the Brockx in more detail. Manufacturing the Brockx can be done in the Netherlands first, and later in Central Europe as this will be cheaper. The price of the Brockx is determined through a competition-oriented method. The place of the Brockx is in the Netherlands, and made available through channels of a wholesaler. For the promotion, offline and online marketing methods have been proposed, together with an implementation plan.