Beach Carrier Case Analysis

Beach Carrier Case Analysis

INTRODUCTION:

Mary Ricci, a striving entrepreneur wants to produce her product the beach carrier in the market however lacks the capital to do so. Ricci, is unwilling to license her product to manufacturers elsewhere as she believes in the potential of her product and therefore refuses to sell it for a flat fee.

THE PRODUCT:

The Beach Carrier is a 90cm by 90cm bag that has the capacity to store all the essentials for a day at the beach including a beach chair. It is adjustable and made of lightweight, tear-proof fabric that dries quickly. It also folds down into a smaller bag (30cm by 30cm) to allow for easy storage and has many different sized pockets that add to its unique storage quality. The Beach Carrier comes in a variety of colors thus potential buyers have a wide range of options to chose from. Additionally, this bag can also be used to transport items that are more difficult to carry therefore expanding its use above and beyond a beach bag.

PURPOSE / GOAL:  

The ultimate goal for Mary Ricci is to be able to manufacture the product and integrate it into the market.

STRENGTHS/PRODUCT OPPORTUNITIES:

The beach carrier has a number of strengths that have the potential to be on top in the market:

• The product owner has the correct and necessary skills to successfully commercialize the product and see it through.
• The product is more affordable than other products in the same market. One major competitor has their product priced at $16.25 and the second major competitor has it priced at $59.99. The beach carrier aims to set the price in the $12.99-$14.99 range and therefore has an automatic benefit.
• The many material features that the Beach Carrier has, are unique to its own and therefore sets it above competitor’s similar product which as a result will make it easier to obtain a patent for the product.
• The mail order marketing strategy that Ricci has used makes it easy to find individuals who have used similar products in the past therefore she can aim to promote her product to those same individuals.
• The product has the potential of generating a huge market share

The Beach Carrier stands out by it’s physical qualities and overall look. This is what gives the product a major advantage against other competitors and in general:

• The material of the Beach Carrier is more durable and has a unique style.
• The fact that the bag can hold every single product needed for a day at the beach and can further be folded when not in use make it stand out.
• Competitor’s similar products are only offered in three colours whereas the Beach Carrier aims to be manufactured in many different colours.

PRODUCT CHALLENGES:  

Challenges that are evident when studying this case include:

• Mary Ricci does not have the resources required to invest in the product
• Ricci is unwilling to sell the product pattern to a manufacturer
• Ricci based her sole research on individuals that use sunscreen. Sunscreen is not only used by people who go to the beach and therefore there would be many individuals that despite them buying sunscreen, would not invest in the beach carrier. Because of this, the results could possibly be flawed.
• Individuals replace their beach bag every three years therefore an average of only one third of individuals in the market will buy a bag each year.
• The financing figures Ricci has outlined may not be enough to fund the initial rollout.
• Promotion strategy may be less effective in today’s time as we live in a modernized world where everything is becoming more technologized and on screen. Promoting the product through the mail does not take into account those who do not check their mail on a regular basis / discards flyers or catalogues as such.
• Taking all the research into consideration, it is possible that Ricci has overestimated the overall target market for the product. Including gender and age.
• Mary Ricci plans to store inventory in her garage. This puts a limitation on the amount that her manufacturing company can produce at once as if too much, there will be no room for storage.

Material challenges of the product should also be taken into consideration: