Trap-Ease America: The Big Cheese of Mousetraps.
MKT 500
Case 1
Trap-Ease America:
The Big Cheese of Mousetraps
By: Chehade Kanaan
Presented: March 23, 2004
To Mr. Ziad Haddad
. Martha and the Trap-Ease America investors feel they face a "once-in-a-lifetime" opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it?
If a man [can]... make a better mousetrap than his neighbor...the world will make a beaten path to his door.
Customer perceived value, is what counts. If the customers believe that, and the perceived cost is lesser then the perceived value then a purchase will be made. Value =Benefits/Costs.
To evaluate this market opportunity they need to answer five important questions:
- Can the benefits involved in "Trap Ease" be articulated convincingly to a defined target market
- Can the target market be located and reached with cost-effective media and trade channels?
- Does the company possess or have access to critical capabilities and resources needed to deliver the customer benefits?
- Can the company deliver the benefits better then any actual competitors?
- Will the financial rate of return meet or exceed the company's required threshold for investment?
Most probably the group will write a traditional statement, like:
We provide an innovative pest control device ...
I would write something like this:
Our responsibility is for the families and businesses, to provide them with a safe, and mess free way of pest control.
2. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
Martha is considering women as it's target market, but is the woman the decision maker when it comes to home improvement items like mouse traps, women avoid the pest control ...
This is a preview of the whole essay
Most probably the group will write a traditional statement, like:
We provide an innovative pest control device ...
I would write something like this:
Our responsibility is for the families and businesses, to provide them with a safe, and mess free way of pest control.
2. Has Martha identified the best target market for Trap-Ease? What other market segments might the firm target?
Martha is considering women as it's target market, but is the woman the decision maker when it comes to home improvement items like mouse traps, women avoid the pest control part altogether due to it's gruesome nature. She could target males, businesses (offices, and plants), farmers ... all viable options. The products added value isn't only perceived by women, the other segments mentioned above also may find it as superior. Pest Control Company's can make a good target market; they are specialized in finding solutions to customers, and would find in trap ease a great product for their clients. Telemarketing could also be considered.
3. How has the company positioned the Trap-Ease relative to the chosen target market? Could it position the product in other ways?
The chosen market is "women", i.e. the housewife. Most housewives are in charge of the household's finances and spending. They are highly conscious of cost, it was stated in the article that the Trap-Ease was approximately five to ten times more expensive than the standard traps already present in the market. Since the innovative plastic mousetrap aims to reach the market with its new concept, it will take much more than a low price for buyers to realize its value. Decreasing the initial launching price, among other factors, will help increase sales by attracting new customers or attract them from the traditional product. Once Trap-Ease has established its name in the market by increasing market share, prices may be increased, but not at the moment. This does not imply that prices must be lowered below Total Average Cost.
4. Describe the current marketing mix for Trap-Ease. Do you see any problems with this mix?
Product, Price, Promotion, Place / Vs / Customer solution, cost, communication convenience
The product is superior by itself and it provides a needed customer solution. Price is high or at least 3 times higher then its closest competitor from the customer's point of view is not really worth the added value in the product itself. Promotion is done in a medium that is not communicating the message to the correct target market, it is targeting women and as I pointed out in question 2, the targeted market is a small segment of the total "hardware" customers. Place it is located in the top hardware, grocery and drug chains, on the first look this seems enough, but I believe that here product should be sold in every store she can sell it in. the more total shelf space she gains the more products she can sell, that is a general marketing rule.
My recommendation for this marketing mix is:
* Lower the price for the initial market penetration
* Use the product innovative aspect to promote it to a larger potential clientele
* Sell it in as much possible stores as possible, surprisingly you will find a large amount of the sales are generated by a sort of an impulse first purchase, when a customer sees the product in the store.
5. Who is Trap-Ease America's competition?
This products innovative idea sets it apart from all the conventional similar products, but it still faces a high competition from:
* The classical messy mouse traps, the spring loaded kind (highly popular)
It is dangerous to set, and dangerous to leave around for kids and pets to find, but it had the advantage of being cheaper and the proven conventional method
* Glue sheets, they are highly messy to set and once set they could also trap insects and non intended victims like lizards making them useless and another one has to be set.
* Poison, highly dangerous for children and pets alike.
* Cage traps, usually made of metal, and much more expensive then the plastic "Trap-Ease"
6. How would you change Trap-Ease's market strategy? What kinds of control procedures would you establish for this strategy?
I would change the price and target market as discussed previously
I would try to introduce product innovations and changes, maybe in bundling or packaging, I would increase to the distribution channel, making sure that the product can reach as much potential customers as possible. I will try my best to use the product innovative nature to get cheap (or free) advertising in the specialized magazines, and maybe also with the animal rights magazines. I will research new external and international markets to sell my product in.
All of the above should be done a detailed marketing plan and under a budget to enable control of the sales, expenditures and the results. Thus enabling any fast changes to the original plan, to ensure a higher success potential.
