MKT 204

INNOVATIVE PRODUCT
AND PRICING STRATEGY

ASSIGNMENT 1

CHAI KEAN KING B0803058

YEAP THAI LEE B0803611

Introduction
Recently, global warming is the big issue in the world. This is due to the high
consumption on petrol, lumbering, air pollution of factories and others factors which
caused global warming. Therefore, compare to 100 years ago, our temperature has
average risen 0.4 and 0.8 °C. Indeed, all human are facing a hotter weather compare
with twenty century. (http://www.livescience.com/globalwarming/)

Malaysia is one of the tropical countries where most of the time the weather is hot and
damp. According to BBc.com the average temperature is 23°C - 32°C. Other than
that, the weather forecast from onestopmalaysia.com showed the average temperature
is 33°C and above nowadays. Malaysians are living under the hot sun and suffering
high temperature. These are one of the reasons that we introduce the CoolerKing
portable car shed. (http://www.bbc.co.uk/weather/world/city_guides/results.shtml?
tt=TT002590)

Furthermore, Malaysia parking lots are so limited and expensive parking rate. Most of
the car owners might use the alternative way park their car at road sites legally but
they cannot avoid the heat due to the high temperature in Malaysia especially from
afternoon to evening. Some of the private parking lots are open air and most of
consumers are facing the same problem. It will help to reduce the temperature inside
their car and avoid blown away after portable car shed installed under car front and
back bumpers. Therefore, CoolerKing believe that, most of the car owner will
purchases the portable car shed because it is convenient and affordable for the
consumer. (http://www.onestopmalaysia.com/my-weather-forecast/)

Product
CoolerKing is offering a brand new modified car shed to consumer named
CoolerKing Portable Car Shed. The reason of calling it as portable car shed because
the extension parts install at the front and back bumpers are to lock the car cover.
Therefore, compare with old version car cover, the extension parts is similar with
shed stands which do not be blown away by wind. Besides, user has no worries on
storm rain that car cover cannot protect the car body scratched by branches.
(Appendix 1)

Secondly, the car shed cover is made by elastic roll sun protection materials to reflect
the heat and enable to cover the car easier. User just has to lock the car shed into the
car front extension and roll it to the back and lock at the back. Compare with the old
version of car shed, user has to move around the car to ensure the car shed is properly
covering the whole car.

CoolerKing is using environmental friendly materials. To respond to the current

global issue which is global warming, environmental protection is needed to create
awareness and position itself as an environmental friendly. Therefore, with the feature
of environmental friendly, CoolerKing can promote itself with an extra benefit
compare with other competitors.

Besides, due to CoolerKing Portable Car Shed is a modified version of normal car
cover so the features of old version car cover will be retained. The features would be
protection on car painted. This is to increase the durability of car painted to be more
lasting and brighter. Besides, car cover is covering the whole car body. Therefore,
user can protect the car by not worry on the car scratched by people. Furthermore,
modified car cover still retains the feature of protection from sun heat and radiation.

Positioning

Positioning enables CoolerKing to create image and identity in their target market.
CoolerKing is targeting age group from 21 years old to 55 years old. Indeed,
CoolerKing is targeting a higher purchasing power and willing to buy or try
innovative products. Therefore, CoolerKing should position itself as a brand new
product with a modified features and additional benefits to differentiate it from the
others competitors. Besides, CoolerKing can use environmental protection materials
to position itself as an environmental friendly product to meet the global issue “save
the environment”.

Differentiation

Compare with direct competitor, CoolerKing is having competitive advantage. Even

CoolerKing is only a modified car cover but still able to outstand itself from other
competitors. The competitive advantage would be the extensions allocate in front and
back of the car. The extensions enable car driver to cover the whole car with no
worries on it will be blown away and upgraded resistance heat materials. Besides,
compare with normal car cover, CoolerKing’s elastic roll function enable user easier
to put on and collect the car cover. By these two points, CoolerKing could
differentiate itself from direct competitor.

Pricing

Due to it is an innovative product, CoolerKing Portable Car Shed is using skimming

strategy. CoolerKing can sell in a high price and sacrifice high sales to gain a higher
profit. This is to reimburse the cost of investment of the original researches.
Furthermore, this is used to target early adopters because early adopters are relatively
less price-sensitive because they would like to understand the value of the product
rather than the price. Before the competitors copy CoolerKing’s design, CoorKing can
earn more but this strategy employed only for a limited duration to recover most of
investment made to build the product. Therefore, CoolerKing’s selling price is
RM369 which slightly higher than normal car cover. However, CoolerKing is
providing free installation free of extensions to consumer. Therefore, it is added value
to consumer to increase the value to consumer.

Market Analysis

There few factors we need to consider in our market analysis such as market size,
market segmentation, competitor analysis in order to get more insight understanding
on consumers need. After that, how should we target potential customers and which
strategies should we used in order to achieve more profit margin. CoolerKing
vehicle shed is the first semi-automated portable car shed in market, so we need to
attained those information in order fulfill consumers’ need and solve their problem.In
order to attained these information there are a few aspects which need be look into
customers analysis, competitor analysis and macroenvironment.

Customers Analysis

Customer analysis is linked with the marketing mix 5P, how is the CoolerKing
Portable Car Shed meet customers’ expectation and solve their problem, the
marketing 5P included product, people, price, place and promotion. Furthermore,
marketer needs to focus on consumers social and culture behaviour. Lastly here come
to personality and psychological factors to influence consumers make a purchase on
own product.

We segmented the potential target market into a smaller group, because plenty of
consumer are seeking different needs and wants in the market, insight understand on
consumers group’s characteristic, it will be more easier for marketer to provide better
services in order to fulfil customers’ needs. CoolerKing marketer is focusing on
Demographic and Psychographic Segmentation and going to target on customers’ age
between 21 years old to 55 years old. This is because this characteristic would need to
travel a lot with their vehicle, so might need to suffer the heat when parked under the
hot sun, it will be the potential target market for CoolerKing portable vehicle shed.
http://www.netmba.com/marketing/market/segmentation/

Furthermore, working adult such as sales consultant or sales executive needs travel a
lot to meet their clients; CoolerKing Portable Car Shed will be very useful and
convenient tools to avoid the heat by covering the whole car. Nowadays, Kuala
Lumpur golden triangle parking lot are so limited and expensive, most of the car
owner may choose the alternative way park their car on open air car park because the
probability to get a parking lot is much higher than indoor car park while the parking
rate remained whether indoor or outdoor open air car park in the golden triangle.

CoolerKing Portable Car Shed also look into Psychographic segmentation

characteristic on the value element, since the CoolerKing vehicle shed is so useful and
convenient, it can be plug or unplug on the front bumper and it also very easy to
store. The market price of a standard CoolerKing car shed is only RM 369; it is
affordable for most of the car owners. Even car tinted film on market for a standard
vehicle will also cost around Rm400 and above.
Base on this research study, currently, Kuala Lumpur golden triangle is having 2.2
million and 1.4 million of employment. It is a very great opportunity for CoolerKing
Portable Car Shed targeting the right potential target market with the sustainable
growth rate of population and reinforces high awareness of the new innovative
product-portable car shed.

http://klcityplan2020.dbkl.gov.my/eis/?page_id=290

Factors influencing consumer Buying Behaviour

There are few factors that influencing consumers’ buying behaviour, such as social
factors and personal. CoolerKing portable vehicle car shed is the first innovation
product on market, social factors play important roles on market, for example
reference group, family and play feedback will directly influences consumers buying
behaviour. In twenty-first century, consumers are more knowledgeable; consumers
seek information from social group such as feedback and comments to reduce
purchases risk, especially CoolerKing portable vehicle shed is a new innovative
product on market.

Personal factors such as age, occupation and economic situation might affect
consumers buying behaviour. Buying behaviour might change base on the life cycle
stage, for example single working adult may like to spend more on new product, like
to be an early adopter. It’s different from married with children, any consumers fall in
this categories will not be the early adopter, it’s may need some promotional tools
such as discount in order to influence them to make a purchases. Lastly, the
occupations also influence consumers buying behaviour, for example sales
consultants or sales executives will form a positives image on CoolerKing portable
vehicle shed, because CoolerKing helps to keep their vehicle feel cold. However, high
level job position such as chief executive officer, chief operation officer might not
interested to CoolerKing, because they have hired driver, and seldom to drive.

Macro environment

According to Kotler & Keller (2006), marketer focuses on unmet needs and trend on
consumers to become a successful company. There are few major forces for
CoolerKing, economic environment, social environment and demographic
environment.
Economic environment, Kuala Lumpur is a golden triangle will have 2.2 million and
1.4 million of employment, excellent opportunity for CoolerKing vehicle car shed ,
however according to Malaysia economic report ‘Malaysia may just not be sufficient
as far as staying away from financial recession’
(http://www.economywatch.com/economic-report/malaysia.html) .

CoolerKing is selling Rm369, it is still affordable to everyone, CoollerKing will not

have any problem in the introducing stage even though economic still not efficient
enough.

Social culture economic, Malaysia is one of the tropical countries and most of the
time the weather is hot. We seen some vehicle owner will place a mini sun shed inside
their car windscreen to avoid the heat. CoolerKing believe there are high probabilities
of acceptance portable vehicle shed in a tropical country.

Demographic environment, CoolerKing’s potential customers will be age between 21

years old and 55 years old, base on the segmentation mentioned earlier, this category
age group is having high purchasing power and more reasonable to target this age
range. Furthermore, CoolerKing focuses on occupation as well which also in the
demographic group. Sales executive or sales advisor will be the mean target because
all consumers fall on this category might need to travel a lot, CoolerKing would be a
very useful portable car shed for this segment.

Marketing Mix

CoolerKing Portable Car Shed is the innovative product which has been modified
from a normal car shed in the market, marketer need to achieve more market
awareness in order to generate high input of sales. CoolerKing will uses price
skimming strategy. During introduction stage, CoolerKing charged relatively high
price. CoolerKing is a new product, directly selling will be more appropriate for
CoolerKing, sales consultants need to provide valuable information on CoolerKing
features advantages on the portable vehicle shed. Lastly, CoolerKing will more
concern on Kuala Lumpur, base on this research study, Kuala Lumpur has the highest
population among others, and CoolerKing is seeking more dealers in Klang Valley
area to generate high input of sales.
Competitor analysis

Competitor analysis is an assessment of the strengths and weaknesses of current and

potential competitors. It provides offensive and defensive strategic to identify
opportunities and threats to the firm. It supports strategy formulation, implementation,
monitoring and adjustment. However, most of the competitors do not much focus on
this analysis or incomplete this analysis. As a result, traditional environmental
scanning places many firms at risk of dangerous competitive blind spots due to a lack
of robust competitor analysis.

For CoolerKing’s direct competitors is Nonwoven Car Cover. Nonwoven Car Cover
is known as none weather oven car cover. Competitor’s name has clearly classified
itself as the efficient car cover to protect their car to not become an “oven car”. This
company’s main product is Ordinary non-woven fabric car cover. The materials used
are single-layer anti-aging to address the non-woven, spun-bonded non-woven
polypropylene. Its features are good anti-UV effect, the use of durable, soft, and
breathable performance.
Indirect competitors would be window car sun shade & windshield, and tinted
windows. Both products generally are to block the sun heat and to reflect the sun
shine. For sun shade, it can be used while the car is moving and do not affect the
driver. Windshield is used to protect the car desk board and to reduce the heat inside
the car. Both sun shade and windshield are to reduce heat and protect desk board and
leather seats. Compare with car cover, shade and windshield is less effective on
reducing the heat in car. However, the strength compare with normal car cover is
cheaper and easier to use.

The second competitor is tinted windows. Nowadays, tinted window is becoming

more popular. Tinted window is a better choice compare with sun shade and
windshield. Tinted window thin film is made from heat rejecting material and offers
protection from sunlight, UV-Rays, infrared rays and other forms of radiation.
However, tinted window is different with car cover, car cover is used when the car is
parked in an open air parking for a long period but tinted window is used in all day
long. In contrast, car cover can be used to protect auto paint and the sun shine will not
heat up the car through the windows and car body also. But tinted window’s main
purpose is to reduce the radiations and car heat, therefore, both car cover and tinted
window are having similarity which to reduce the heat.

Conclusion
As conclusion, CoolerKing Portable Car Shed is a modified car cover. The extension
and environmental friendly materials are the selling points of CoolerKing. Currently,
with the improvement and retained features and benefits, CoolerKing could forecast
good selling and do fulfil the need of consumer while global warming is happening in
the world. However, further improvement is needed to be more competitive in future.
Therefore, further research on technology is needed to make sure technology could
support the requirements of CoolerKing Portable Car Shed.

Reference
-BBc Home , Kuala Lumpur Average Condition ,viewed on 30March 2010,
<http://www.bbc.co.uk/weather/world/city_guides/results.shtml?tt=TT002590>

-Kotler, P. and Keller, K.L. (2009) Marketing Management, 13 th Edition, Pearson

International Edition.

-Malaysia population review, Kuala Lumpur plan2020 ,viewed on 29March 2010,

<http://klcityplan2020.dbkl.gov.my/eis/?page_id=290>

-Malaysia economic review, EconomicWatch Finance reports ,viewed on 29March

2010, <http://www.economywatch.com/economic-report/malaysia.html

-Marketing strategy, Market segmentation ,viewed on 29March 2010,

<http://www.netmba.com/marketing/market/segmentation/>

-One Stop Malaysia , My Weather forecast ,viewed on 29March 2010,

<http://www.onestopmalaysia.com/my-weather-forecast/>
Appendix1

Product

Car Front Car Back

Car Cover Extensions

*Red circle add-on the extensions to ensure the car cover is locked. Besides, the car
cover is made by environmental friendly materials.