Product Launch Plan - Channel and Pricing
Home Security Systems (HSS) is working on becoming part of Chennai, India by implementing a new security system. To do this HSS must justify the international market choice by giving Chennai an idea of how HSS will establish the company. HSS needs to determine the factors influencing the current market such as trends, size of market, growth rate, and profitability. The appropriate channel HSS chose is in the apartment complexes and justify this because of the growth in Chennai. Price also needs to be set in a reasonable range for the citizens to want to choose HSS security options. The environmental factors for launching HSS products in India are: the government, governing bodies, the economy, technology, social, and demographic factors. HSS will explain this better in this product launch plan for channeling and pricing.
Justification of International Market Choice
HSS, a well-established company in the domestic market, is planning to expand globally. HSS has chosen Chennai in India as its city of expansion. Chennai with a rapidly growing population has not only become the home for major IT Corporations but also become a hub for automobile industry in the recent years (Bellman, 2010, para. 1).
“Most companies start small when venturing abroad” (Kotler & Keller, 2006, p. 671). HSS is planning to trial the worldwide expansion in Chennai and grow further after an initial establishment. “Companies entering an international market sometimes follow the waterfall approach meaning sequential planning of entry and establishment” (Kotler & Keller, 2006, p. 671). Chennai currently has some security services like ATSS and Petal management services. Nevertheless, the packages are very basic with inflexible pricing (ATSS, n.d). HSS with its competitive advantage can provide various packages for the solution-oriented market.
“The Deccan Chronicle reported an increase in robbery in Chennai from 1,144 in 2009 to 1,817 in 2010” (The Deccan Chronicle, 2011, para. 3). “The police to the people sanctioning ratio are 1:350; however, the current ratio is 1:387” (Tamil Nadu Police, 2011, p. 13). With a growing population, increasing crime rate and low police to the people ratio; Chennai is the potential market for HSS’s global expansion.
“In Secretary of States Hillary Clinton's recent visit to India, Hillary describes Tamil Nadu as one of the most industrialized and educated states willing to enable India to lead the Asia-Pacific region” (Times of India, 2011, para. 3). The city of Chennai in Tamil Nadu, India has the potential population and future growth to support the product launch.
“Marketers are in the size and growth rate of the population in different cities, regions, and nations; age distribution and ethnic mix; educational levels; household patterns; and regional characteristics and movements” (Kotler & Keller, 2006, p. 54). As mentioned earlier the forecasted growth...