Marketing Plan for Multi-functional Remote Device (MRD)
Executive Summary
The MRD is a new product produced by the Logitech Company in the UK. The MRD can integrate all the functionalities of the various electronic appliances, hotel room device controls, and the hotel room settings for various utilities under one remote control device. The MRD will be able to communicate directly to installed servers connected with different ordering services in the hotels. Effective marketing strategies using the PESTL model and situational analysis will ensure the MRD is anchored to the right course of the market competition in the UK while integrating the conceptual framework of the 4Ps marketing decision.
The Challenge
The development if the Multi-functional Remote Device (MRD) has been fostered by the search for innovative products in the field of technology. The swift in the technological evolution in the hospitality industry has led to higher expectations of customer satisfaction and retention (Neuhofer et al, 2015). Presently, the hotel industry depends on the stand-alone modes of technology to meet the requirements in the areas of check-out facilities, purchase, electronic check-in, and in-room entertainment. The hotel occupants also need to have the control of the room setting for various utilities, and appliances they use during their stay in the hotel (Roosli et al, 2019). These requirements led to the development of the MRD. MRD would enable the integration of the hotel services into a single electronic device.
MRD contains single integrated applications, which enable the access of the premium services and desired functionalities offered by the hospitality establishment to the customers (Roosli et al, 2019). In the next five years, the MRD will dominate the European hotel industry. The MRD sales forecast is based on the total room stock in the UK at approximately 600,000 rooms. The MRD sales are expected to grow at 5 percent per annum (Neuhofer et al, 2015). The average MRD price is expected to rise in the first year and stabilize for year 2 and three at GBP150 before dropping in the subsequent year because of the economies of scale.
Table 1: MRD Sales Forecast for five years.
| Sales Forecast | Year 1(GBP) | Year 2(GBP) | Year 3(GBP) | Year 4(GBP) | Year 5(GBP) |
| Total sales forecast (GBP) | 2,330,000 | 6,354,000 | 8,733,250 | 10,201,880 | 8,301,579 |
| Percentage of MDRs sold | 3.0% | 7% | 9% | 12% | 12% |
| MRDs sold (numbers) | 18,000 | 44,100 | 59,535 | 83,349 | 87,516 |
| Average MRD price (GBP) | 125 | 150 | 150 | 120 | 96 |
| Total sales forecast (million GBP) | 2.25 | 6.62 | 8.93 | 10.00 | 8.40 |
| Hotel rooms targeted (numbers) | 610,000 | 630,300 | 651,500 | 674,575 | 713,304 |
Situation Analysis
Customer Analysis
Most buyers of the MRD will be the hotels and their customers. The hotel industry is on the rise regarding the use of technology. The number of customers in the industry who will employ the use of MRD for the first year will be about 610,000 customers. For the second year, the number will be expected to rise by about 20,000 before bobbling in the subsequent years until year 5. Majority of the customers who will use the MRD will consider its efficiency, and affordable price as the number one value driver. The usefulness of the MRD will inform their purchasing decision. As mentioned before, there is the need to have various hotel services under one control using the MRD.
Competitor Analysis
The main sources of competition for the MRD emanate from the firms, which embrace modern technology in controlling and managing their businesses. The GE Universal Remote Control is a potential competitor to the MRD. Many firms have ventured into the technology of remote control for efficient working conditions. The GE Universal Remote is widely used in the world in devices such as DVD players, TV. Such remote controllers are programmed just like the MRD, but they perform certain functions same as the MRD.
Collaborators
The main supplier of the MRD in the UK is the Logitech Company. Logitech Company in the UK has realized the market potential of the MRD and the associated demands in various hotels. Some of the android developers are seeking to develop android applications for various MRD. The mobile application of the MRD would enable a more efficient approach in managing the device. Some of the telecommunication companies in the UK have entered into a joint venture with MRD. Lynk Company developed a 5-in-1 design, which combines the functions of a full window keyboard. In collaboration with the Logitech Company, the joint venture developed some of the TV Set-Top Box and Optical Mouse for PC use. These products fully integrate the use of the MRD in their control with other control mechanisms.
Macro-environment Analysis (PEST)
Political and legal environment
The political environment in the UK is stable and favorable for the hotel industry. Countries with political instability do not attract high hotel occupancy, and thus a low number of customers would use the MRD. All the innovative products in the UK need to comply with the UK regulatory and statutory, and electronic standards. The compliances are mandated.
Economic environment
The current economic environment is still characterized by medium and short term risk. The recent increase in the VAT by the government has subdued the economic sentiment. The introduction of the MRD will lead to better economic performances of the hotel industry. There would be improved turnover and profitability and savings in energy consumption.
Social and Cultural environment
The introduction of the MRD will not call for the adjustment of the existing social norms. The UK population is conversant with the use of electronic technology devices.
Technological environment
The UK population is composed of a large cohort of techno-savvy individuals who are open to innovation. Therefore, there is a robust implementation of technology merchandise.
Segmentation, Targeting, and Positioning
According to the existing catalogs about the hotel industry in the UK, there are various ranges of hospitality establishment in the UK. These include a farmhouse, motor lodges, motels, inns, and guesthouses (Roosli et al, 2019). Some consultancy industries segregate such establishment into two economically distinct groups. The first group is the least establishment comprising of farmhouses, bed and breakfast, and guest houses with an estimate of about 202,000 rooms. The second group is comprised of the hotels, motels, motor lodges, and Inns with no distinct segments.
The ability of the Logitech Company to address the target market will maximize the sales and the profitability of the company. The target markets for the MRD in the hospitality industry are the hotel owners, and their customers (Neuhofer et al, 2015). The company needs to focus on the medium level categories of hotels. The volume targets will be up to the four-star hotels in the UK.
The geographical location of the hospitality business establishment is spread all over the UK. South West England has become the largest tourist attraction region, while the lowest hospitality establishment is found at the Merseyside (Roosli et al, 2019). These areas will assist in the correct positioning of the product in the hospitality industry (Neuhofer et al, 2015). MRD is unique in the sense that it integrates various remote functions into one device which can be controlled remotely. MRD brings all the functionality of all remote system into one.
Marketing Strategy
Product
All the MRD products will bear the brand name of the Logitech Company. The functionality of the MRD will enable communication with different servers connected with ordering services and goods from a hotel. Different servers will be linked to the shops, and stores to allow the customers to effect reservations. The product will have a one year warranty period. The Logitech does all packaging in sealed packets bearing the brand name and the company’s official logo.
Price
The company will consider various pricing strategies for MRD. Differentiation of the pricing will be the first approach. For the first two years after the product launch, the company will allow a 10 percent discount on the MRD. The payments terms will be based on the customer’s interests but integrating the use of the electronic money transfer systems and payment platforms such as PayPal.
Distribution
The retail shops will be situated in the potential market areas.
Promotion
The advertisements will be done on various media outlets such as TVs and print media. The main advertising message will be the effectiveness of the MRD.
Summary
The marketing strategy for the MRD will consider the challenges the product will be likely to face in the market. These challenges are approximated for the next five years after the product launch to allow for effective market entry. The situation analysis will determine whether the product will prosper in the market using customer, competitor, and the collaborator’s analyses as well as the PESTL model. Effective segmentation, targeting, and market positioning will be the key aspect to ensure the product thrives in the market. The 4Ps marketing strategy will also ensure the details of the MRD are available for customers during the purchase.
References
Neuhofer, B., Buhalis, D., & Ladkin, A. (2015). Smart technologies for personalized experiences: a case study in the hospitality domain. Electronic Markets, 25(3), 243-254.
Roosli, P., Gardner, R. M., & Sagar, R. M. (2019). U.S. Patent Application No. 16/212,521.