Electro Guard Essay

5. Positioning Strategy

Electro-Guard offers customer’s Business, home and family 24 hour security monitoring from burglary, fire and carbon monoxide dangers while simultaneously monitoring other critical conditions, such as temperature and flood. Using advanced communication technology, Security Alarms deliver fast, reliable home security services at a reasonable cost. The most important difference between Electro-Guard and competitors is also the brand’s most important distinguishing feature. The manufacturing plant at offshore location that help with having significantly lower cost of manufacturing products without compromising on the quality of the product.

6. Marketing Mix Elements

a. Product

Electro-Guard have Monitored Alarm

with a valid Police Unique Reference Number can receive Police Response to Alarm activations. A Personal Attack Signal from a Monitored Alarm will be immediately policed knowing that help is on the way.

With a Monitored Alarm more than 65% of faults can be resolved by remote diagnosis and resets without the need for an Engineer to attend.

Security Alarms’s mission surrounds “Secure Canadian communities”. Though they do cater to both business and regular customers, their target consumer extends broadly to include those seeking to have better automation at home and/or at workplace. They see creativity as a hallmark of their brand and strive to integrate new, innovative products that “provide material benefits to the consumers’ safety. With these mission in mind, Security Alarms is expected to attract both business and at home consumers.

b. Price

The price point for Security Alarms’s Electro-Guard will be higher than some of the competitor’s similar product. The target segments are discriminating. They are looking for options for better choices for complete home automation solutions besides home alarm system. Electro-Guard is the solution for customer current and future needs.
While target customers are prepared to pay for quality, finding the correct price requires determining the profit objectives of this product, confirming the expectations of our target market, and understanding the costs involved with manufacturing and distributing this new product. The marketing team will combine the information pulled from the surveyed participants with information produced from the analysis of a cost plus pricing model. Reviewing the manufacturing and distribution costs of Electro-Guard and comparing this cost against the acceptable cost offered by the customers will provide insight into the profitability of the product.
The prices and methods of purchasing a home alarm system vary greatly. Some systems require large up front installation costs upwards of $1000. Other systems are very low up front, but have a multi-year contract.
The advantage of having product manufacturing in Malaysia the landed cost of Electro-Guard for 2 interconnected monitoring stations which is an average customer requirement will be between $250 and $300.
Customer will be having choice between Buying Versus Leasing. Buying the security system equipment outright: $700 installation, and all equipment and $15 per month for monitoring (single monitoring station). The advantage to the leased system is the low upfront costs. Lifetime warranty and servicing. Costs are lower up front, but guaranteed long term due to warranty and servicing included.

c.

Distribution (Place)

The marketing team proposed placing Electro-Guard in big retail stores including web stores besides real state agencies to catch attentions from prospective customers. This placement strategy facilitates the introduction of the product, stimulates conversations about the product while also allowing the customer to try the product. Examples of strategic placement include bricks and mortar locations as well as house or business locations demo sales events (i.e. Open house).

In the first phase of the marketing strategy will be a push phase which will be reassessed when the revenue generated sales has established a pattern of profitability. When this target has been met the marketing team suggests a review of this strategy with the expectation that a pull strategy is sustainable. The marketing team wants to deliver this high quality product with a high level of customer support. Customers will need time to learn about the product and that they will appreciate the opportunity to try the product. The combination of a high quality product supported by a committed marketing team in person, at key locations, and with online support to answer questions will stimulate interest and create a positive

experience.

In addition to have on phone contact option, Security Alarms will also have a strong online presence. The web pages, with a rotating placement on the homepage for the initial launch. The information explaining the unique qualities of the product will be outlined along with prompts to engage consumers further. An online chat feature for consumers to ask questions to live marketing representatives. Home or business pre-sales visits by experience salesperson will be needed for the complex monitoring needs.

During the push-strategy phase the locations chosen for physical placement and interactive events will be provided the first opportunity for retailing. This approach is intended to make the Electro-Guard appear exclusive to customers, while also demonstrating gratitude to businesses for allowing the marketing team to approach their customers.

When the revenue generated has established a pattern of profitability the push strategy will be reviewed with the probability of moving to a pull phase. At this point the number of outlets selling the product is expected to increase to support demand.

d. Promotion

The objectives of the promotion strategy are to make aware, educate and engage customer in a respectful and constructive manner. Electro-Guard introduction will combine personal interactions with public relations. Face to face conversations, on the open houses for new housing projects and point of sale displays in retail store will trigger the initial sales and customer curiosity. Further product visibility and public relations will be supported through TV, Radio, and newspaper advertisement opportunities.

The Home automation is relatively new concept engaging the customer in a respectful and constructive manner is important. Usually business owners are educated and informed. They have strong values and they need to be treated as intelligent customers to win their interest. The face to face approach provides customers the opportunity to ask questions, get answers and see the products. These conversations are expected to stimulate on-the-spot sales. Promotional displays will further support expected sales and generate curiosity at the introductory events. The visual display of promotional materials will use a series of photos illustrating product Electro-Guard Security feature and it will be helpful in customers concerns regarding home automation needs.