Introduction amenities and now we are going
Introduction TOTO Ltd. was established in 1917 and is the market leader in toilet manufacturer market. Its missions are to develop products which can be used daily by people at any ages comfortably. TOTO Washlet is an innovative toilet seat that can jet water towards the user with a remote control.
1The objective of the business to business marketing plan are promoting environmental friendly, extending market share, developing business market in hospital and hotel industry and meeting $5 million sales after six month. Target Business Customer We mainly target on companies that consume including hotels and private owned hospital.For hotels we target Kowloon and Island Shangri-La, Macro Polo Hotel HK Cafe. They were our existing client using our product as their toilet amenities and now we are going to propose them up-sell it. Adopt the smart washlet instead of the traditional one. To let them gain a competitive advantage as their competitors not yet adopted the smart washlet. For private owned hospital, we target on St.
We Will Write a Custom Essay Specifically
For You For Only $13.90/page!
Teresa Hotel, HK Sanatorium &Hospital and Yan On Hospital. Since some patients may have difficulties to clean themselves after going toilet, the smart washlet allow cleaning in mild way instead of using toilet tissue.Apply in all wards. Strategic Situation Analysis Bargaining power of customer Our target customers have strong bargaining power because of different effectiveness. As our target customers are large companies in each industry, they always purchase large quantity.
They can squeeze hard for price concession, effectively pressing out profit opportunities. Also, they can bargain on the delay payment term or return the product. Moreover, there are many substitutes for choosing which are including the product providers as the direct and indirect competitors.
Especially three hotels are our current customers, which have more bargaining power. We need to keep the good relationship with those companies when up-selling of the washlet. We may be needed to provide more discounts to motivate them to purchase the washlet. Threat of substitutes There are not only the same function product distributors in the business market, but also the indirect substitutes within the industry. No matter what effectiveness is indirectly or directly, both are our competitors.
First, direct competitors provide the same functional product of us which are IZEN International Ltd2 and Archifeature Ltd3.Second, there are others substitutes as the indirect competitors, such as paper towel and shower filter for taking bath after excretes. Tempo as P&G 4 , is one of the paper towel providers. Our target customer are using those substitutes nowadays, it may hard to change them to use our product to replace the substitutes. We need to define the differential and benefit between our products to each substitute more unique and affective. It affects the opportunity of our business successful. Bargaining Power of suppliers Premium ABS Plastic is the major material of TOTO’s washlet.
There are many suppliers provide plastic raw material (ABS) 5.Therefore, TOTO has many different choice of supplier, the bargaining power of suppliers is quite weak. Hence, it is good for TOTO to negotiate the price and payment term with supplier. Threat of potential entrant As washlet are commonly found in Japan and Korea, overseas companies may start to expand their overseas presence, like China and the United States. Hong Kong is a new market as people are more concerning hygiene section nowadays. But there is less threat of potential entrant to TOTO as TOTO is a market leader of washlet manufactures and there are just a few washlet manufactures such as Royal TOTO Co.
Ltd6 and Colinda Group7 .Struggles between industry rival In Hong Kong, there are only a few washlet manufactures such as IZEN International Ltd and DAEWON BIDET Co. , Ltd. And TOTO is a market leader of washlet manufactures, it is using a unique washlet technology leads to a completely new level of hygiene and comfort. Therefore, the struggles are small as less direct competitors and strong brand image.
Formulating B2B Marketing Strategies Price Our aim at pricing is to increase market share. When our target hotel successfully built a positive word-of-mouth from their end-users, it may attract more hotels follow to adopt the smart washlet.In turn it can increase our market share. The price of washlet may not the major concern to our client but durability.
Offer after sales service to our client. On the other hand, washlet is a kind of necessity, so it should be elastic and there have lots of substitutes. Therefore the demand of quantity is highly sensitive to changes in price. We need to emphasize the durability of our well brand product. Also, the nature of competitive markets is Oligopolies as there are a few sellers of the smart washlet Negotiation strategy used in company that consume should occurs after proposals are evaluated.The type of pricing we adopted negotiated price, we offer a free installation and exclusive price for clients in exchange for we adopted negotiated price, we offer a free installation and exclusive price for clients in exchange for them to note they were using our brand name product. Further, adopt a Collaboration strategy; it’s a win-win negotiation strategy.
Because our targeted hotels are existing clients so it is essential to keep a long-term relationship with them. And it enhances to build word-of-mouth of our product, thus increase market share and profitability.Place We have around 20 distributors in Kowloon, Hong Kong Island and New Territories. They all provide selective service, and are limited-function wholesalers as they sell few models of our products.
Besides, we have a showroom at Wan Chai. We need to design a channel for our product placing. First, we need to identify and forecast the user service needs.
Our target customers are hotels and private hospitals; they need the high quality product with sanitary and convenience function.Second, we need to create a vision for ideal channel, in this section, we need rapid delivery and different payment terms to build the long relationship with our customers. Furthermore, we need to assess options.
We should evaluate the current channels and other options, now we have 20 distributors; they mainly sell our items, but we should try to find more distributors, because they are only provide the selective service. About the implement and manage stage, we have to look at the competitor’s product to set our distribution strategy. Besides, we will use the gap analysis to compare the actual performance and expectations.In order to have better control on the channels members, we will use carrots and sticks method to maintain their performance. When the performance of distributor is bad, we will give the punishment to them, we may cancel the discount on mass product buying. When their performance is good, we will give the reward to them, they can use 7 washlet price to buy 10 washlet.
Product About our product, TOTO washlet is new in Hong Kong market, it includes many benefits that it makes user feel relaxing comfort and clean, and it provides warm water washing and automatic warm air dryer.The washlet also has a list of competitive advantages, first, it has the temperature control function and oscillating cleansing function. Second, it can provide the deodorization function with advanced technology.
All the above advantages can increase the market share. About the product life cycle, our product is on the introduction stage. There is primary demand and the most important market, so we need to create demand for our product. On this stage, the sales are relatively low, the profits are unlikely and the sales revenue is invested in creating awareness.Also, there is rapid expansions of distributors and product line expansion. We need to place more advertisement to let our potential customer know about our new product. About the GE Matrix, we use it to measure the market attractiveness and business strength.
(Appendix 1) There are some essential factors to make our product successful in market. First, we have the advanced technology which is unique in the industry. Second, the market growth of this product is increasing; more people are now pay attention on the hygiene section8. Third, the washlet product is always our best selling product, so it could attract our potential customer.
Also, people want to use environmental product9 now, so our product that uses the environmental concept technology can fit the customers’ wants. Finally, we will place more advertisement on the introduction stage. Promotion The advertising strategies include the creative plan and media plan.
About the creative plan, we need to create an attractive content of message for our product. Our product is focused on high technology, goods of origin – Japan, convenient and automatic system; we need to deliver the above character to our target customers.About the media plan, we will make advertising on trade journal, trade publications or magazines, and trade show. The above communication channels can help us to increase the brand awareness, generate sales and develop the demand of our product. TOTO set both the positioning and action objectives for our advertising strategy. About positioning objectives, we want to develop demand of our products, support other communication channels of our company, such as show room and distributors, create favorable climate for our staff to make personal sale calls, also enhance our company image.
About the action objectives, we aim to generate sales and increase the attendance of trade show – Hong Kong Electronic Fair (Spring Edition). Apart from the normal advertising on trade journal and trade show, we will also hold some advertising promotion activities. First, we will offer trade allowance to the customers, including free delivery and different payment terms, customer can enjoy free delivery when they pay full payment within 7 days after sign up the sales confirmation. Furthermore, we will produce point of purchase display in distributors’ stores.We will select the suitable media for our product; it includes making online advertising at eTradeChannel. net, place advertisement on trade Channel – Electronics and The Electronic Trade Journal – FIX Global10, join the trade show and send catalogue to business customer: Hotels, Restaurant.
We will join the Hong Kong Electronic Fair (Spring Edition). Before the fair start, we need to do the pre-show promotion to inform our potential customer and invite them come to the show, for example, we will use direct mail, make advertisement on trade journal, send out the special invitations, and inform them through telemarketing.During the fair, we should make the productive message to our customer and ask for action, that means increase the communication opportunities to the potential customers. Work Plan – Hospital As we have not cooperated with St. Teresa Hospital, Hong Kong Yan On Hospital and Hong Kong Sanatorium & Hospital before, we will go through the stage of awareness, exploration and expansion to develop a trust relationship in these six months. March and April is the awareness stage.
We will train our telemarketing and sales team to equip them with sales skills and knowledge of the product.Also, we will promote our washlet in trade journal and hold a booth in HK Electronic Fair to increase exposure and to seek customers. May and June is the exploration stage. The telemarketing team will identify and contact the hospital’s decision maker to get opportunity to make a presentation and demonstration. We aim at persuading them to use our washlet in wards as there are benefits of clean, environmental friendly and help those patients who are inconvenient to clean after going toilet. The sales team should follow up after presentation and ensure roper expectation and no misconceptions.Then, the salesperson should monitor the order processing and delivery to make sure delivers are as promised and at appropriate time to create trust relationship.
Further assisting in service would be provided like 24-hour customer hotline to provide technical support and handle complaint. July and August is the expansion stage. We will follow up to see if customers are satisfied after testing the washlet and to encourage repeat purchase. We hope that hospital will expand the usage to those in aisle as there is additional benefit of valued –added. Work Plan – HotelAs TOTO has cooperated with Macro Polo HK Hotel Cafe, Island Shangri-La Hotel and Kwoloon Shangri-La Hotel before, we skipped the first two steps. March and April is the expansion stage.
TOTO will generate repeat sales from these hotels to maintain relationship. Salesperson will contact with hotels’ decision makers to confirm they are in contact with TOTO and to ensure repeat purchase. Then, TOTO will send people to hotels and hold a demonstration for the washlet.
As the washlet can install in all hotel rooms, this can let hotels to provide an upgraded service for its customers.As hotel’s customers will think hotel is thoughtful and knows their need, this will increase the hotel image. Also, in April, TOTO will hold a boot in HK Electronic Fair, and all distributors can join the fair by invitation and take order of what they want during the fair. TOTO can seek potential customers during the show. In May and June, TOTO will continue contacting with decision makers as to sell higher quality washlet in hotel rooms and to make sure ordering of products. Afterwards, salesperson needs to contact the decision makers and confirm the selling and taking order for hotels.
Besides selling washlet, TOTO will sell the full-line products by telemarketing team as to promote other facilities that suit hotels usage. This action is also used to convince hotels to use TOTO’s products continuously. At commitment stage during July and August, we will keep relationship with hotels and as a preferred supplier status in three hotels to create a long-term buyer-seller relationship. During this stage, we will build direct communication line as to create a partnership relation.
Brief evaluation of B2B Marketing planAfter implementing the marketing plan, there are few ways to evaluate our efforts to the actual performance. First, the sale volume change. It is a significant figure to evaluate whether our marketing effort are effective or not. Second, market share analysis shows our product how well it is reaching clients in Hong Kong. Further, it also helps us compare to our competitors. Third, Marketing cost and profitability analysis, to go over whether our expenses in advertising and promotion used effectively.
Furthermore, we can review whether the profit can cover the marketing expenses and make improvement in our marketing budget in the future. Fourth, to evaluate Customer satisfaction, we will contact with our client to ask the end-user satisfaction towards to our product. Survey and personal visit will be used to follow up the customer satisfaction. Fifth, advertising effort. We will observe how customer collects information about our new product. Thus, we can identify which advertising methods is the most effective to create awareness to our target market. RecommendationWhen the washlet has reached the growth stage instead of introduction stage in Hong Kong, we can expand the extent of usage to public toilet.
Hong Kong people concern more about environment nowadays and our washlet can help save toilet paper. This can also improve the Hong Kong image as environmental friendly as Japan. Also, we should mature or even advance our technology in making washlet. We should find a way to mature the technology in making washlet with lower cost of material to increase revenue and we may make toilet in baby size so as to help parent or baby care center in baby cleaning.
ConclusionIt will be a successful business-to-business marketing of TOTO which aimed at hotel industry and private owned hospital as they can have a competitive advantage within the industry. It aims to promote protection of environment and also provide service for the needy and provide an upgraded service in hotel industry. Reference 1.
TOTO, http://www. toto. com. hk/index2. html, retrieved on 28/03/2010 2.
IZEN International Ltd, http://www. izenbidet. com/bidetizen.
htm, retrieved on 30/03/2010 3. Archifeature Ltd, http://www. washletwash.
com/index. php? lang=en, retrieved on 30/03/2010 4. Tempo-P&G http://hk.
pg. com/Introduction. spx. htm, retrieved on 30/03/2010 5. Suppliers of ABS Plastic, http://dir.
indiamart. com/indianexporters/plastic. html, retrieved on 30/03/2010 6. Royal TOTO Co. Ltd, http://royaltoto. en. ec21.
com/company_info. jsp, retrieved on 30/03/2010 7. Colinda Group, http://www. made-in-china. com/showroom/elaine114, retrieved on 30/03/2010 8.
?????????? , http://hk. news. yahoo.
com/article/090824/3/dvgk. html, retrieved on 29/03/2010 9. ???????? , http://hk. news. yahoo. com/article/081022/3/8v18. html, retrieved on 29/03/2010 10.
FIX Global, http://fixglobal. com/media/FIXGLOBAL_Media_Kit_2009. pdf, retrieved on 29/03/2010