New market positioning for a new product Introduction ACL Clean has been a successful product in the Hampshire and the company expanded into the Essex region Market. However sales were low and public awareness was lacking. The company was using the majority of its funds on the products line extension and little on advertisement and product placement. This is the key factor in the poor sales in Essex because the public isn’t aware of ACL Clean and its benefits.
In order to make ACL Clean a more successful and well known product, funds used for the product line extension need to be diverted to advertising in order implement a new positioning strategy in the Essex market. The best way to implement a new positioning strategy would be through the marketing of ACL Clean to first time buyers of cleaning equipment. In order to do this ACL Clean will need to promote sales, advertise, and become established in the public. Background In January 1990, ABC cleaning Ltd commissioned the cleaning equipment division.
The cleaning equipment division expanded more by introducing new products. In the Hampshire area, effective promotion has helped ACL clean become a success. Market awareness is upwards of 80% and brand loyalty is high despite the high price. Advertising is used in the Hampshire for promotion. Ads target general cleaning equipment owners because the market is segmented more according to benefits sought rather than any demographic such as age, gender, or income. The major media is television using commercials with a humorous approach stressing quality and safety.
ACL clean then decided to work on developing the product line, as well as branch into the Essex market. These line extension products were also offered in Essex as well as Hampshire, and there was no competition for ACL clean because other companies didn’t enter into this new “unknown” category of cleaning equipment. Over 5 years in the Essex market and sales are still low. The product is available in most key outlets like Tesco, ASDA, Sainsbury, and also in smaller chains. There is little sales promotions, since the website for ACL clean is where the sales promotions are. But there is no awareness of the site.
The same pricing strategy is used in Essex as in the Hampshire, but ACL clean has not worked on justifying the cost in consumer’s minds. Furthermore the product line extensions took the majority of the budget leaving no funds for advertising. Without advertising there is no brand loyalty in Essex like in Hampshire. Too much has been put into the product line extension and not enough into the positioning strategy. As a result there is weak positioning and low awareness of this product. Statement of Problems The main concern is that ACL clean has an ineffective positioning strategy in that one was never established for the Essex market.
The product was introduced and the line extensions were added, however no effective marketing was done to target the market they were introducing the product into. The lack of establishing a new positioning strategy in Essex has lead to low product awareness, no brand loyalty and low sales. Also, no advertising has resulted in little product position in the consumers mind. Essex consumers are unaware of the product and its benefits because there have been no commercials or ads or promotion of any kind. Strategies Alternative 1 The current positioning strategy has no strengths and many weaknesses as demonstrated in the lack of sales.
Therefore a new positioning strategy must be developed. A target market should be defined so that advertising, marketing and public relations can be more focused and effective. ACL clean is a great product with high quality and safety, and with increasing health awareness and infection control campaigns by health authorities people, are more inclined to clean their homes more often. So by targeting the first-time buyers in the market, ACL clean could be effectively promoted as a great product to help households enhance a healthy environment.
This demographic is likely around the age of 25-35. Mainly people out of school, beginning a career or becoming more established, and are able to make a major purchase like a cleaning equipment and want one that will last them for as long as possible. Promoting ACL clean as the product that will achieve this will increase product awareness, create brand loyalty, and ultimately increase sales. However, as many first-time buyers have been using other cleaning equipment or have used other products related to car care, introducing ACL clean as a premium product will be a daunting task ecause there is already an established brand loyalty to other products, even though they are not as good as ACL clean. With establishment of the original ACL clean product in the market the opportunities of the line extensions are limitless. A great way to promote ACL clean in the Essex market would be through public relations. A great strategy would be to sponsor an event such as a cleaning equipment show in Essex region. Alternative 2 Another effective means of marketing ACL clean to the Essex Region as a great product with quality safety benefits would be through alliance with healthcare companies and local authorities.
Alternative 3 Advertising is the most obvious and effective choice to place ACL clean in the consumers mind, just as it has in the Hampshire. Through TV commercials, magazine ads, and banners on web pages, the name and product information relation to ACL clean would be widely visible. Since TV is a major media source, having commercials that target the demographic of first-time buyers, would make the greatest impact for ACL clean. TV spots during primetime TV on major Essex stations would be seen by millions of viewers. Creating commercials that are exciting and fresh of the special features of ACL clean will catch viewer’s interest.
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