Amabursh Assignment 30% PDF

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Answers and Question for Introduction to Marketing assignment 30%...

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1.0 Executive Summary Amabrush is the world’s first automatic toothbrush that is going to be launched. This whole new automatic toothbrush is able to provide a lot of functions like fast cleaning, easy handling. This marketing plan will discuss about the analysis of what is the current environment situation to market the product by doing the situation analysis using the PESTEL method. Where this analysis will firstly deduce and analyze what is the current situation and problems in the environment, in order to set correct objectives and marketing strategy before the product is going to be marketed.

Firstly, the marketing strategy will be aimed toward people who don’t have enough time, like businessman, and also aimed for children and adults but not senior citizens as they are unlikely to use the product. There is also a challenge for Amabrush from the sociocultural where some people will already be used to using manual toothbrush that they will not consider changing into automatic toothbrush, and also this product is less affordable for people with low income levels.

Amabrush are also facing a lot of other problem like in economic sctor, where they currently do not have enough sales to cover their cost and even generating profits. And this causing them to not be able to deliver some of their pre-order products to their customers, and thus causing disappointment between customers and lead to them asking for refund. Therefore, the marketing strategies are made based on the focus to firstly increase customers and sales for Amabrush.

To achieve Amabrush’s objective, this marketing plan will carry out some marketing strategies, which is marketing mix strategy that detailed out all the 4 factors with all the researches in it to be considered by Amabrush to achieve their objectives which is to attract more customers and increase their sales.

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2.0 Table of Content 1.0 Executive Summary………………………………………...3 3.0 Background overview………………………………………5 4.0 Situation Analysis- SWOT…………………………………6 5.0 Situation Analysis- PEST………………………………...7-8 6.0 Problem List………………………………………………..9 7.0 Marketing Objectives……………………………………..10 8.0 Target Market………………………………………….11-12 9.0 Marketing mix tactics..........................................................13 9.1 Product……………………………………………………………13-14 9.2 Price……………………………………………………………………14 9.3 Place…………………………………………………………………...15 9.4 Promotion……………………………………………………………..16

10.0 Conclusion……………………………………………….17 11.0 List of References.........................................................18-19

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3.0 Background overview

Amabrush is a company name and also a product of an automatic toothbrush. This company and toothbrush is found by Marvin Musialek which is located in San Francisco, CA. Marvin explained that he first come up with the idea of this product 6 years ago when he was standing in front of the mirror of his bathroom and thinking about the troublesome and time taking things which is brushing teeth. Since then he was thinking about the automatic cleaning robot thing every day (Staff 2018).

And after that, he started to do a lot of research and form a team of many disciplines: dentists, biomedical engineers, physics engineers, electronic engineers and even a psychologist to come up with this products.And then they have start developing the product for the last 3 yearsand have also received grants from the Austrian Government and the European Commission and they brought amabrush to kickstarter in July of 2017 and were fully funded in one month (Marty Jablow DMD – SWYP Dental 2018).

Marvin actually estimates that 50% of their products will take place in Europe, especially in German-speaking Europe (Germany/Austria/Switzerland) and the other 50% will take place in North America, especially in the United States. This toothbrush is currently “online-only” where they planned to sell it by websites or online shop in short-run. But in long-run they plan to start selling it to grocery stores, dentists and drug stores (Staff 2017).

For now, the products still hasn’t been launched yet as this product is going into the healthcare sector in order to meet the corresponding level of quality. They plan to deliver the product to the market on the third quarter of the year (Update 19: March Update · Amabrush World's First Automatic Toothbrush 2018).

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4.0 Situation Analysis- Micro Strengths The strength of Amabrush is it is a convenient and easy use device that helps us to clean your teeth in 10 seconds, which can save our time. This product is also an eco-friendly device that just produce a low voltage of tech. Besides, it promotes zero waste as it helps to minimize the toothpaste. Moreover, it able to works with braces and dental prosthesis. AMA Brush have their own IOS or Android apps that help u manage different vibration mode such as gum massage, whitening (Marquis 2017).

Weaknesses The weaknesses of Amabrush are there are no physical store selling it currently, the only way to purchase it is on their official website or Amazon. Besides that, currently they only plan to aim for certain countries such as Austria, German (Staff 2017). And based on customer reviews in Amabrush websites, no money back guarantee is available for it.

Opportunities As amabrush’s campaign suggests, amabrush vision is to help provide a simpler life for especially busy people. As the current trend are people become busier and start to put aside things that they think less important. One of them are brushing their teeth. This is an opportunity for amabrush as people usually youngsters and working people will be aware and start to change their habit as amabrush provide simpler lifestyle for them by help saving their time (GmbH 2018).

Threats People start to show their distrust because amabrush postponed the launching of the product and also because amabrush don’t meet some of the customer’s requirements/demands. This problem will make Amabrush lose their customers and also their reputation.

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5.0 Situation Analysis – Macro 5.1 Political In 2017, There is a government’s issue with amabrush that causing them not able to launch their pre-release products to their pilot tester. Where here, the government said that there is no different between pre-production or retail units. So amabrush will need to find certificate and warranty for even the sample product that will slow down their production process. So amabrush choose not to launch any pre-production units (Whatever Happened to the Amabrush Hands-Free Automatic Toothbrushing Device? - Core77 2018).

5.2 Economical From the updates in their website, we found that amabrush was actually raising funds for their project in 2017, where they started their project on 5 July 2017 and also start a campaign to gather supporters and raise funds. We found out that they already reach their target where they successfully gather €3,198,516 with 26,832 backers on August 5 2017. But they still have economic problem to develop their product as there is some people reviews that stated the company cannot make a refillable capsules of toothpaste because of economic problem as they still earned a small amount of aftersales money lead to people asking refund. (Amabrush World's First Automatic Toothbrush 2018).

5.3 Social Culture The price of Amabrush is too high so that it makes most of the people resist to buy Amabrush. For example, some people think that the usage of Amabrush and traditional toothbrush the same especially senior citizens. They think that they don’t need to waste those money to consume it and they also think that they don’t want to make their life more complicated. Other than that, people are scare with those scammers, there was one person had ordered “Amabrush” but end up with getting an “Autobrush”. The product is also coming with no instruction and it doesn’t look like the picture in the advertisement.

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5.4 Technology Since there are new innovation of technology, there are surely some problem on it. With the fully automatic brushing teeth in 10 seconds, according to Marquis (2017), he mentioned that if too much of pressure in brushing teeth, it will cause harmful for gum and long strokes can't get in the middle of hard-to-reach teeth. The brush does not brush and the power unit works however there is no chance to get for it to vibrate or move the brush. Besides that, the consumers are delay of receive products from Amabrush. There are many people keep on commenting “give me a refund", "where is it?!" (Kickstarter 2018). This is due to the Amabrush having some development issues and they must find a solution to solve this problem.

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6.0 Problem List (PEST) After we done our research, we found out that government’s issue with Amabrush causing them not able to launch their pre-release products to their pilot tester. Besides that, there are some people reviews that stated the company cannot make a refillable capsule of toothpaste and do delivery, because of economic problem as they still earned a small amount of aftersales money lead to people asking for refund (Update 19: March Update · Amabrush - World's First Automatic Toothbrush 2018). Other than that, a specific group of people also refuse to buy Amabrush. For example, those senior citizens refuse to use Amabrush because most of them are not even able to use it. So, the main problem in Amabrush is people asking for refund as the demand for the refillable capsules and delivery cannot be fulfilled as Amabrush are facing a lot of issues from economy and technology factor (Kickstarter 2018).

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7.0 Marketing Objectives First of all, Amabrush marketing objective is they have to increase the sales. They can do this by offering promotions to customers, maybe such as discounts, free 1 refillable toothpaste every any purchase made. With this they will be able to increase their sales while solving their problem where they miss their customer trust after delaying in shipping of their product. Besides that, Amabrush also can improve their product awareness by promoting themselves in social media. Next, they can also promote their products to dentist as a trial. We decide to use this method is because we found out a research in 2015, where there are number of 84.7% of children who are 2-7 years old to visit dentist and 64% for adults starting from 18-64 years old (FastStats 2015). So, we think that by promoting to dentist will bring a huge contribution in their product awareness. Furthermore, Amabrush can also enhance customer relationships. They can create a website which allows their customers to provide feedback and review and they can also provide an online consultant to have live chat with their customers in their official website (Ltd. 2018).

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8.0 Target Market As there are two type of target market method, which is mass market method and segment market method, Amabrush need to choose one of these two methods to apply as their market targeting method. Mass market method is a market targeting method by targeting or aiming to produce a product to all segment/level/group of consumer. While segment market targeting method is a method where a company only target a selected group of consumer to market their product. We personally think that having a segment target market method is better for Amabrush as this will help Amabrush to be able to focus on a group of customer so Amabrush can maximize the customer satisfaction as by doing target market, they can specify type of product that the selected target customer need, and doing more development on that. Rather than they focus on all group of customer (mass marketing) where Amabrush will need a lot of resources to do research on all customers demand which is inefficient while they still won’t be able to satisfy all of the customers and cause them to lose their market shares (Why Is Identifying the Target Market so Important to a Company? 2018). So because of that, we suggest that Amabrush should make a target market based on specific segment customer which is we think should be from the Age range of 2 to 50. As we think that the people in this age group are willing to consume their product rather than the people from other group of age who are mostly people who don’t really need Amabrush product as they have less or don’t have any tooth to apply this product. Since this product is costlier than other traditional toothbrushes. We suggest that Amabrush should also target on those people who are in the category of medium-upper income class level. As they are the people who are more likely to be able to purchase this product.

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Furthermore, we suggest Amabrush to also target for those business people which we think that they have a lot of job to do, therefore they don’t have enough time to take care of themselves especially in brushing their teeth as for some people this is less important. So by introducing this product to them. It is more likely that they will buy Amabrush’s product to save their time. So, we conclude that Amabrush should target for a Medium-upper class income level businessman which is still in the age of 20 – 50. We come to this conclusion is because this target usually already has a family so there is possibility that they will also buy for their family to use, such as their wife, or husband, and also possible they already have a child with the age of above 14 which this will indirectly help Amabrush to increase their sales performance.

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9.0 Marketing mix Tactics Marketing mix is a factor that able to influence customer’s purchasing decision, marketing mix is a marketing tools used by companies to achieve their marketing objectives which is to implement an appropriate strategies to successfully market their products. The main components inside marketing mix are product, price, place, and promotion (Kotter & Armstrong cited in Astuti, Silalahi, & Wijaya 2015, p. 68). So in this essay, we will evaluate all 4 components of marketing mix to determine best marketing strategy for Amabrush.

9.1 Product Firstly, since we found that according to a research in Pediatric (2016), people already start using toothbrush since a baby, followed by toddler, and children. So we will recommend Amabrush to firstly produce various size of the mouthpiece, like adult size, baby size, and children size. This go along with our target market which are also between this age level groups. Based on that, we will then recommend Amabrush to provide some buying packages from family packages which consist of 2 adults and 2 children set. Where in this set, customers can choose the mouthpiece size and design for both adult and children and get 12 refillable capsule toothpastes with 4 hand pieces and hand piece chargers. Other than that, there is also for 4 adults set, this set consists of four adult size mouthpieces where they can also choose the design and also 12 refillable capsule toothpastes, also with 4 hand pieces and hand piece chargers. Moreover, there is also couple set which is a set for two adults. This set consists of two adult size mouthpieces, 6 refillable capsule toothpastes and also with selectable design and 2 hand pieces with hand piece chargers. The design here can be differences of color, differences of the mouthpiece type like soft bristles for babies, hard bristles for extra cleaning for adults, and or normal bristles.

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Besides that, Amabrush should also provide individual package which consist of a mouthpiece, a hand piece with its charger, and 3 refillable capsule toothpastes for either adult or children. Where in this set, it is more suitable for a person who are living alone. Other than that, Amabrush should also provide a selling package of refillable capsule toothpaste which consist of around 50 units of the toothpastes as one refillable capsule toothpaste is small. Furthermore, amabrush should provide selling package of mouthpiece for the existing customers to renew their mouthpiece.

9.2 Price Price is an essential element in marketing mix that interferes directly with company’s profitability and effectiveness. So here we recommend Amabrush to use a value based pricing as this is a newly innovative product, so they have the value inside, and then will allow Amabrush to set a high price (Toni et al. 2017). According to GmbH (2018), an Amabrush basic package which is the same with the individual package that we suggested, cost around €129.00 which is sold in their webpage. So, we suggest that Amabrush use money based promotions with the value based pricing by cutting the price a little bit for their other package to attract more customers to buy the Amabrush product while we actually still setting a high price inside. Maybe they can make the price for the family package cheaper as our objective is to achieve more sales. For suggestion, Amabrush can make the 2 adults and 2 children set, in a price of €459.99 so it will attract customers to buy this set, as it looks more worth but actually we still have the high price inside. Besides that, the 4 adults set can be sold in the price of €479.99 which also seems worth rather than buying 4 individual packages. On top of that, the couple set can be sold in the price of €239.99. This is all done so that Amabrush can get more sales and keep having better profit till the future because of the valued high price. As our suggestion for Amabrush is to also sell refillable capsule toothpaste package and mouthpiece to the customer, Amabrush can suggest the customers cheaper price if they buy both package together. In this way, Amabrush can also increase the sales of their toothpaste and mouthpiece package and therefore slowly also increase their profit.

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9.3 Place Place is one essential factor in marketing mix for Amabrush. Place in marketing mix can enable Amabrush to make their products reach all their customers easily (Garg, Singh & De 2016). The place we recommend for AMA BRUSH to market or supply their products as for current, they only sell their product at online store (Kickstarter 2018) are firstly at dentist store. Because as what we mentioned in our marketing objective before, where 84.7 % of children and 64% of adults come to dentist every year (FactStats 2015). And so, dentist can use their professional role to introduce AMA brush to their patient. Besides that, pharmacy is also a place that are recommended to AMA Brush. Since pharmacy sells products such as medicine, medical equipment and daily use product which can be related to Amabrush products. In addition, shopping mall is a best place to promote AMA Brush. Promoting in shopping mall let people know and familiar about AMA Brush. Besides, get as many feedback and survey from the consumer like for the design, function, and package. So, AMA Brush can gather the information they get and improve their products to be better.

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9.4 Promotion Lastly, Amabrush also need to do promotion, as promotion can help Amabrush to increase their product awareness to attract customers, and to influence them to buy their products (The Economic Times 2018). At first, Amabrush can suggest their customers to apply for their membership to get some privileges, where Amabrush can set an amount of price for customers to become a member for a year (annually). The privileges can be like purchasing discount from an amount of 5 to 10% depends on the amount of product bought by the customers as long as they still in a membership. Customers also can get free shipping if they subscribe as a member. This way Amabrush will be able to encourage their customers to firstly purchase a membership since they find it have a lot of advantages, besides they will also buy more after they become a member.

And also, Amabrush can offer a free shipping promotion for early bird customers (customer that pre-order Amabrush’s product) like in GmbH (2018). Besides, Amabrush can also offer this free shipping for customers that buy Amabrush products in bulk. For early bird ...