Question 1 should the company introduce the new product immediately in the market, or not?
Lena is a powder-based coating specifically for the hardwood products, and it could also be used to coat other products as well. The characteristics of the powder-based coating are more positive than liquid based coatings. Benefits of the powder-based coating, and liquid-based coating are given in figure 1.
On the other hand, other types of coatings market segment have matured, and some of the coating product’s sales are declining due to unfulfilled expectations of the customers. Since, Lena has all those attributes and characteristics that customers are waiting for purchasing the new product that would enhance the quality of their finishes, and would make them more protective against scratches.
The powder coatings market represents only 15% of the total industrial finishing market, and it would grow by 10% annually.
The attributes of Lena are more effective and attractive such as durability, shape versatility, environmentally friendly, cost effective, no product limitations and coating versatility.The waste of Lena would be around 3% as compared to waste of solvent-based, water-based 20%, and 18%. So, it is the right time that company should immediately introduce the product in the market given that there is a huge demand for such product that is more effective and efficient as compared to other coatings.
The powder coatings market represents only 15% of the total industrial finishing market, and it would grow by 10% annually. There is huge growth expected in the powder-based coating market segment, because it has not become mature as it is on the growth stage, and there are many chances that product would penetrate in the market.
Question: 2 create a Forecast of company’s revenue (including new client) for the 2022.
It is anticipated that when company would launch the Lena in the market then its 60% customers from the solvent-based coating would shift to powder-based coating, and 40% of water-based customers would also powder-based coating (Lena). Similarly, the total revenues for the 2017 and 2022 has been calculated. See exhibit 1, and spreadsheet. Furthermore, the revenues by product type have also been calculated. See exhibit 1 and spreadsheet.
Question: 3 suggest marketing Mix strategy the company should implement (4ps-Marketing Mix)
Lena is powder-based coating for the hardwood products, and it could also be used to coat some other products. The product’s unique attributes contribute to customer satisfaction such as durability, extensive quality of finishes when coated with powder-based coating, and increases the life of finishes. In addition, the Lena is most the appropriate product to eliminate the waste that company has been making with other products such as liquid-based coatings. In powder-based coating the waste could be significantly reduced since average waste in liquid coatings is 20%, but the powder-based coating would have only 3% of waste.
The Lena ismost attractive product to the customers, and would penetrate quickly due to its attributes, cost saving nature, no product limitations, being environmentally friendly……..
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