Description
Promotion StrategyDevelop a promotion strategy, choosing the types of ads and messaging (e.g., TV, radio, Billboard, magazines, etc.).Explain the associations you want your consumers to have about your brand and how you will differentiate. (Hint: Describe what will you say in the ads? How? How will you differentiate?)Suggest a brand name and slogan (e.g., Nike – “Just Do It”, or Apple – “Think Different” or L’Oreal – “Because You’re Worth It”).
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Product Description
Product Name = “E-WAG”
Product manager:
○ The potential features we should include are your standard wagon with upgraded
wheels built for tough terrain. The handle with the button that will turn on and off
the electric part of the wagon (during the smoke test this does not need to be
completely functional). A charger should be included.
○ Prototype:
○
Through one of our teammates’ connection with an engineering student we were
able to join forces to work on product development. We were able to design and
build a prototype fitting our company. This included adding the specific wheels
and electronic components to an existing wagon on the market. We were able to
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participate in these efforts together. We were fortunate to have access to a 3-D
printer and we used this to design our wagon in a model. This was a new and
rewarding experience. I also created the google doc and google slides for our
group to complete our work.
Sicheng Wen:
○ Market research and problem identification: We will study the market by
developing questionnaires to understand the needs and desires of potential
customers. The focus is to understand whether potential customers have pain
points or functional redundancies regarding the appearance, functionality, battery
life and other features of existing products. At the same time, it is also necessary
to work closely with stakeholders and product parts and raw material suppliers to
collect detailed product requirements. And there is a need to ensure that the van
is built to the set requirements and meets the planned release date.
○ Continuous feedback loop: As the product progresses, the market environment
changes, and customer demand differentiates, it is necessary to establish a
product feedback mechanism (using product questionnaires, app feedback, etc.).
Based on this information, continue to segment the market and prepare for nextgeneration product research.
Finance manager:
●
Chrisitna Frey:
○ For our product, the sales price of $849.99 makes sense for our target market
after comparing it to the price of eScooters, eBikes and other wagons on the
market. For any personal use motorized item such as these the typical selling
price is between $600 – $1,500 and up. The cost to produce one unit is
approximately $302 so at a selling price of $849.99 we are expecting a profit of
$547.99 per unit sold. Our Fixed costs consist of Labor for assembly only. I
estimate that it will take approximately 2 hours for one person to modify and
assemble one wagon from start to finish and to keep compliance with labor laws
we would hire them at part time (roughly 32 hours per week) to avoid benefit
costs. Based on these assumptions we would need 8 workers to reach our target
goal of 500 carts produced per month. Our break even point for our initial round
of production would be 178 units sold, which if sales are on par with production
would take about a week and a half. This is assuming there is demand for our
product, but realistically we expect to sell approximately 300 units in the first
month.
Pricing Model
Cost of goods data
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Break-even Analysis
10/6/23 – 11/6/23
FIXED COSTS
VARIABLE COSTS
PRODUCTION COSTS:
Materials (500
units/month)
Wagon base ($27.50/cart)
Wheels (2 per cart $76.50/unit)
Batteries ($30/unit)
Throttle controls ($2.95/unit)
Chargers ($8/unit)
Wiring ($0.14/meter min 3,000
meters)
Shipping and handling (Estimated)
Labor (8 people @ $20/hr 32 hrs/
week)
$13,750.00
$76,500.00
$15,000.00
$1,475.00
$4,000.00
$420.00
$14,665.00
$20,480
SELLING EXPENSES:
Advertising
Facebook Ads
Youtube Ads
Twitter Ads
TikTok Ads
$500
$300
$300
$400
GENERAL EXPENSES:
Shipping & Packing materials
$3,073.60
$21,980
TOTALS
$128,883.60
SALES AND INCOME DATA:
Selling price per unit
Expected unit sales
Target operating income for the period
$849.99
300.00
$104,133.40
RESULTS
Contribution margin per unit
Unit sales at break-even point
Dollar sales at break-even point
Dollar sales at expected level
Expected operating income
Unit sales at target operating income
Dollar sales at target operating
income
$592.22
178.00
$151,298.22
$254,997.00
$104,133.40
300.00
$254,997.00
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Advertising manager:
● Hau Luu:
Logo: Our logo represents the fusion of innovation, eco-consciousness, and advanced
technology in the motorized wagon industry. It embodies our commitment to providing our
customers with high-quality, environmentally friendly, and cutting-edge solutions.
Advertising strategies:
Social media is one of the most powerful tool for advertising right now, therefore, E-WAG’s
advertising strategy revolves around connecting with people via the power of social media
platforms. At E-WAG, we are committed to reaching our marketing goals and offering our
revolutionary motorized wagon solutions to a broader audience. To achieve this, we leverage
networks such as Twitter, Facebook, YouTube, and TikTok, and here’s why:
1. Reaching a Diverse Audience: Because of the extensive and diverse user base, social
media allow us to introduce our product to people with various backgrounds from across
the globe.
2. Tailored Messaging: These platforms allow for exact targeting, ensuring that we only
contact people who are genuinely interested in our modern motorized cart wagons. This
means that our messages are more likely to be received by people who see them.
3. Visual Storytelling: Social media is a highly visual medium, which fits our strategy
perfectly. It lets us demonstrate our E-WAG products’ versatility, sustainability, and
modernity through photographs and videos that help buyers understand and have a
more vivid visual of our products.
4. Engagement and Interaction: We believe in building a solid and trusted community
around our E-WAG and also establish a strong online presence for the breand . We can
interact with customers, answer questions, and receive feedback and criticism for
improvement through social media. This is a two-way relationship that will help promote
trust and loyalty for our brand.
For example, consider our Facebook ad campaign. We aim to reach a broad audience on
Facebook by promoting the quality and dependability of our motorized wagons. The audience
will be able to review our advanced technology and sustainability in the products, and we
encourage viewers to click the link to our website to learn more.
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Advertising Costs: As noted previously in the finance section, we’ve set monthly budgets for
each platform, which are variable based on performance and whether we’re fulfilling our
marketing objectives.
Business analytics manager:
●
Yuheng Chen:
Question 1: What type of user data and / or product usage data will your company
collect?
As the Business Analytics Manager, my primary areas of focus encompass the following
dimensions: Market Trend data, which includes “competitors’ market share”, and “Sales of
products on the same categories”; Product Differentiation data, which includes “Data of common
wagon” and “Data of remote control car”; Consumer Feedback data, which includes “sales
volume”, “revenue generation”, and “Consumer evaluation from online community”.
Question 2: Why is this data collection required? Justify your position. Can you product
or service work without this data being collected?
It is imperative to understand our market position vis-à-vis competitors to devise an
informed strategy, be it in emulating successful models or carving a distinct niche. This is the
reason why we need the market trend data. Unlike conventional wagons, ours boasts a remotecontrolled feature, making it an engaging plaything for children and a useful asset for adults. It is
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a new thing for the market so we need the “Data of remote control car” and “Data of common
wagon” to initially estimate the market and build the blueprint. Given the innovative nature of our
product, it is crucial to assimilate consumer feedback for iterative product enhancements
continuously. It is noteworthy that a mere 20% of consumers tend to share their feedback online,
with a significant majority opting for silent attrition in the face of dissatisfaction. To counteract this,
fostering a vibrant online community is advisable. Incentivizing feedback through rewards can
further ensure a steady influx of constructive critiques. We need to gain the sustainable
development of our work so we need to monitor the market feedback.
In my opinion, all of these kinds of data are required. We are new beginners in the market, so we
must do well during the initial period and monitor the development to ensure profit maximization/
loss minimization.
Question 3: How will this data help your company improve your product?
Utilizing product and market data enables us to discern prevalent features. By prioritizing
these attributes based on their significance to consumers, we can strategically integrate them into
our wagon, thereby enhancing the likelihood of initial success. Following the introduction of the
Minimum Viable Product (MVP) to the market, direct feedback becomes an invaluable asset for
product refinement. A deeper analytical approach, employing mathematical models such as
regression and correlation analyses, can elucidate underlying trends. For instance, a regression
model can be constructed with features as independent variables and sales as the dependent
variable. Subsequently, features with negative coefficients can be systematically eliminated to
optimize product attributes.
Question 4: Potential issues with privacy, and security with our data collection? If a user
complains about your data collection, what is your response?
（1） Data collection will probably violate laws and regulations. For example, if we use
the spider to collect the data which isn’t allowed on the “robots.txt” document, you will probably
be brought to court.（2） Data collection from consumers will probably expose their privacy. So
what we can do is use a model to analyze it comprehensively. The common mathematical models
don’t need consumer privacy one by one. We can use dummy variables to avoid this problem.
When consumers complain about a company collecting their private information, the
company should adopt the following PR strategies to address the issue:
1.Respond Promptly:
Don’t wait for the situation to escalate. Respond publicly and transparently to the
complaints as soon as possible, acknowledging that the company is aware of the matter.
2.Apologize Sincerely:
If the company has indeed made a mistake, it should sincerely apologize to the affected
consumers and promise measures to rectify the situation.
3.Conduct Internal Investigations:
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Determine the root cause of the issue. Is it a technical glitch, employee negligence, or
something else? The results of the investigation should be made public to ensure transparency.
4.Provide Solutions:
Depending on the severity and nature of the issue, offer appropriate solutions. This may
include compensating the affected consumers, fixing technical issues, or strengthening the
company’s privacy policies.
5.Enhance Communication:
Maintain open channels of communication with consumers, addressing their concerns and
queries in a timely manner. Issue statements on appropriate platforms, explaining the situation
and informing about the company’s countermeasures.
6.Strengthen Training and Awareness:
Conduct privacy protection training for employees, ensuring they understand and adhere to
relevant laws and company policies.
7.Revise and Fortify Privacy Policies:
Based on the incident, revise the company’s privacy policies to better protect consumer
privacy. Publicly commit to these revised policies and measures.
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