Marketing Segmentation for Rental Business
Running head: Marketing Plan
Marketing Segmentation & Product Positioning for
Koolie Kool Rental Services
Koolie Kool Rental Services
Introduction
Koolie Kool is a retailer of refrigerators, which holds inventory from manufacturers until such time as it is sold directly to customers who visit our retail locations. However, from such time as inventory is obtained until it is sold, Koolie Kool has no return on investment. As Koolie Kool holds all of the risk by buying the inventory, it is incumbent on the company to examine ways of mitigating this risk. The core of this marketing plan is that Koolie Kool creates a pre-sales rental market for its refrigerators. In doing so, Koolie Kool will achieve two goals. Firstly, it will obtain revenue from refrigerators that would not otherwise have been sold. Secondly, it will increase the total return on investment (ROI) from each refrigerator; even though the retail price of a pre-rented refrigerator will drop, being able to rent such a fridge even a few times before sale will increase the ROI per unit.
Marketing Segment The segment to which Koolie Kool is targeting its rental services is twofold: (1) middle and lower-middle class families who cannot afford to own a refrigerator outright, but who can pay modest rent-to-own installments on a refrigerator; (2) more well-off but cautious buyers who wish to test a refrigerator in their homes before making a commitment to buy it.
Target Market Analysis Segment (1) is growing every day, as the cascading results of the global recession have lowered household wealth in general. Segment (2) is smaller, but has still grown in response to the recession; even wealthier buyers have adopted a more cautious stance with regards to their purchases, and therefore need to be wooed with more inventive strategies. Both of these segments will be targeted for the simple reasons that they are large, hold a great deal of buying (or renting) power, and are underserved by the current
Marketing Segmentation & Product Positioning for
Koolie Kool Rental Services
Koolie Kool Rental Services
Introduction
Koolie Kool is a retailer of refrigerators, which holds inventory from manufacturers until such time as it is sold directly to customers who visit our retail locations. However, from such time as inventory is obtained until it is sold, Koolie Kool has no return on investment. As Koolie Kool holds all of the risk by buying the inventory, it is incumbent on the company to examine ways of mitigating this risk. The core of this marketing plan is that Koolie Kool creates a pre-sales rental market for its refrigerators. In doing so, Koolie Kool will achieve two goals. Firstly, it will obtain revenue from refrigerators that would not otherwise have been sold. Secondly, it will increase the total return on investment (ROI) from each refrigerator; even though the retail price of a pre-rented refrigerator will drop, being able to rent such a fridge even a few times before sale will increase the ROI per unit.
Marketing Segment The segment to which Koolie Kool is targeting its rental services is twofold: (1) middle and lower-middle class families who cannot afford to own a refrigerator outright, but who can pay modest rent-to-own installments on a refrigerator; (2) more well-off but cautious buyers who wish to test a refrigerator in their homes before making a commitment to buy it.
Target Market Analysis Segment (1) is growing every day, as the cascading results of the global recession have lowered household wealth in general. Segment (2) is smaller, but has still grown in response to the recession; even wealthier buyers have adopted a more cautious stance with regards to their purchases, and therefore need to be wooed with more inventive strategies. Both of these segments will be targeted for the simple reasons that they are large, hold a great deal of buying (or renting) power, and are underserved by the current
References: Fields, B.R., Wilder, S.K., Bunch, J., and Newbold, R. (2007). New York: Morgan James Publishing. Schenck, B.F. (2005). Small business marketing for dummies. New York: For Dummies Press. U.S. Census Bureau. (2009). Income, poverty, and health insurance coverage in the United States. Retrieved April 24, 2010 from http://www.census.gov/prod/2009pubs/p60-236.pdf. Warner, R. and Laurence, B. (2009). Save your small business. San Francisco: Nolo.