Introduction
BBeat has decided to use the Dutch market as a test market. In order to choose the right positioning for the BBeat the Beatteam decides to conduct a market research
The results of this perceptual mapping study will be used to name the axes of the positioning cross. On the horizontal axis is trendy / high tech placed opposite retro-trendy / classic. On the vertical axis is functional placed opposite expressive.
The size of the target group is 2.2 million people. A purchase intention research is conducted and all respondents must belong to the target group. They are interviewed about their purchase intention and to qualify themselves in terms of the categories of the adoption model of Rogers. A sample of 750 persons is interviewed. It appears that during the first year only the Innovators will be reached and during the second year the Innovators and Early adopters. They belong to the target group according to the usual percentages of the adoption curve.
The purchase intention of the Innovators is 2% in the first year and 2% in the second year (total 4% of innovators) and 3% out of the group Early adopters. The total number of respondents indicating to buy a BBeat is 0.2%.
An other conclusion from the research is that for both groups initial demand will be 1%, replacement demand will be 10% and additional demand will be 89%.
BBeat Holland
The Beatteam made an estimate of the costs and revenues of the first two years of introduction on the Dutch market. The contribution in fixed costs of Headquarters in Swiss is also taken into account. The Dutch subsidiary succeeded to recruit three employees and they will remain the same during the coming years.
The total costs are as follows:
• Local Dutch management consists of a General manager, Office manager and a Marketing & Sales Assistant. Their total salaries amount to € 90.000 per year increased with a mark-up of 32% for social securities. In the second year the increase in salaries will be 5% and the increase in social securities will be 3%. During the second year the bonus to the employees will be 20% of their net salary (excl. social securities).
• For recruiting the 3 employees a budget of € 25.000 will be depreciated linear in two years.
• The contribution to the cost of the internet site will be € 125.000 during the first year and the first update in the second year will cost € 65.000,=.
• The contribution to the cost of the call centre will be € 150.000 in the first year and € 175.000 in the second year.
• The office cost will be € 12.500 per employee per year. The costs of automobiles for the General manager and the Sales & Marketing Assistant will be € 600,= per car per month.
• The communication budget will be € 125.000 for the first year and for the second year it will be increased by 30%.
• The cost price of a BBeat for BBeat the Netherlands will be € 40,=. The average consumer sales price included 19% VAT will be € 145,=. The shipping costs of € 6,= have to be paid by the consumer.
Accompanying websites:
www.swatch.com
www.victorinox.com
BBeat has decided to use the Dutch market as a test market. In order to choose the right positioning for the BBeat the Beatteam decides to conduct a market research
The results of this perceptual mapping study will be used to name the axes of the positioning cross. On the horizontal axis is trendy / high tech placed opposite retro-trendy / classic. On the vertical axis is functional placed opposite expressive.
The size of the target group is 2.2 million people. A purchase intention research is conducted and all respondents must belong to the target group. They are interviewed about their purchase intention and to qualify themselves in terms of the categories of the adoption model of Rogers. A sample of 750 persons is interviewed. It appears that during the first year only the Innovators will be reached and during the second year the Innovators and Early adopters. They belong to the target group according to the usual percentages of the adoption curve.
The purchase intention of the Innovators is 2% in the first year and 2% in the second year (total 4% of innovators) and 3% out of the group Early adopters. The total number of respondents indicating to buy a BBeat is 0.2%.
An other conclusion from the research is that for both groups initial demand will be 1%, replacement demand will be 10% and additional demand will be 89%.
BBeat Holland
The Beatteam made an estimate of the costs and revenues of the first two years of introduction on the Dutch market. The contribution in fixed costs of Headquarters in Swiss is also taken into account. The Dutch subsidiary succeeded to recruit three employees and they will remain the same during the coming years.
The total costs are as follows:
• Local Dutch management consists of a General manager, Office manager and a Marketing & Sales Assistant. Their total salaries amount to € 90.000 per year increased with a mark-up of 32% for social securities. In the second year the increase in salaries will be 5% and the increase in social securities will be 3%. During the second year the bonus to the employees will be 20% of their net salary (excl. social securities).
• For recruiting the 3 employees a budget of € 25.000 will be depreciated linear in two years.
• The contribution to the cost of the internet site will be € 125.000 during the first year and the first update in the second year will cost € 65.000,=.
• The contribution to the cost of the call centre will be € 150.000 in the first year and € 175.000 in the second year.
• The office cost will be € 12.500 per employee per year. The costs of automobiles for the General manager and the Sales & Marketing Assistant will be € 600,= per car per month.
• The communication budget will be € 125.000 for the first year and for the second year it will be increased by 30%.
• The cost price of a BBeat for BBeat the Netherlands will be € 40,=. The average consumer sales price included 19% VAT will be € 145,=. The shipping costs of € 6,= have to be paid by the consumer.
Accompanying websites:
www.swatch.com
www.victorinox.com
