Microfridge Analysis
Key Marketing Issues:
Product Competition and Differentiation:
In this case, Bennett hasn’t differentiated MicroFridge from other products. Although MicroFridge was the combination of refrigerator, freezer and 500-watt microwave oven, this product was easy to copy and giant electrical companies would manufacture the same type of products within six months if the market was huge. Therefore, how would MicroFridge sustain in the fierce competitions among big appliance companies.
Marketing Positioning:
Bennett planned to focus on college students segment and motel guests segment. The issues in the college students were in three aspects. One aspect was the approval for college administrators. If MicroFridge was introduced to colleges, the meal plans would reduce and then meal revenues of colleges would decrease. So college administrators would not be easy to be persuaded to purchase MicroFridge. The other aspect was the price charged for the college students. Students were more likely to accept MicroFridge at the price of $ 50 per year than that of $ 75 per year, which meant that price was the key issue to attract customers. Therefore, Bennett has to decide the proper price per year charged for students to increase profits and users. Motel aimed to provide accommodations for guests at a cheap price. Why would motels increase their expenses to purchase MicroFridge and pay for extra electrical expenses?
Product design:
MicroFridge products had devised electrical circuitry that shut off power to refrigerator and freezer whenever the microwave oven was switched on. But the problem was the food, drinks, ice creams in refrigerator or freezer would go bad when the microwave oven was using for a long time once, especially in summer. Another problem in this product was that the lifetime for the power switch. From life experience, the power switch had never been used for 7 years. Power switches were the key components in MicroFridge products. When the power switch stopped
Product Competition and Differentiation:
In this case, Bennett hasn’t differentiated MicroFridge from other products. Although MicroFridge was the combination of refrigerator, freezer and 500-watt microwave oven, this product was easy to copy and giant electrical companies would manufacture the same type of products within six months if the market was huge. Therefore, how would MicroFridge sustain in the fierce competitions among big appliance companies.
Marketing Positioning:
Bennett planned to focus on college students segment and motel guests segment. The issues in the college students were in three aspects. One aspect was the approval for college administrators. If MicroFridge was introduced to colleges, the meal plans would reduce and then meal revenues of colleges would decrease. So college administrators would not be easy to be persuaded to purchase MicroFridge. The other aspect was the price charged for the college students. Students were more likely to accept MicroFridge at the price of $ 50 per year than that of $ 75 per year, which meant that price was the key issue to attract customers. Therefore, Bennett has to decide the proper price per year charged for students to increase profits and users. Motel aimed to provide accommodations for guests at a cheap price. Why would motels increase their expenses to purchase MicroFridge and pay for extra electrical expenses?
Product design:
MicroFridge products had devised electrical circuitry that shut off power to refrigerator and freezer whenever the microwave oven was switched on. But the problem was the food, drinks, ice creams in refrigerator or freezer would go bad when the microwave oven was using for a long time once, especially in summer. Another problem in this product was that the lifetime for the power switch. From life experience, the power switch had never been used for 7 years. Power switches were the key components in MicroFridge products. When the power switch stopped