The document summarizes a marketing plan for a new exercise product called the Diesel-Flex. It describes the product, target demographics, marketing strategy, budget, pricing over the product life cycle, competitors, distribution channels, logo, slogan, and spokesperson. The plan aims to introduce the Diesel-Flex as an innovative way to exercise that is fun and entertaining for customers.
2. The Company Name and Brand
Company Name: Chuta-Corp
Type of Business: Partnership
Brand: Diesel
Past Products: Diesel-Copter
3. Diesel-Copter
A battery operated back-pack and a helicopter
hat that enables the user to fly 25 cm above the
ground
No requirements in order
to fly it (license, intelligence,
physical capability)
Controllable with neck movements
and head direction
4. Diesel-Copter
Light, portable and
enjoyable for kids
A new innovation (Fresh on
the Market)
Affordable and
environmentally friendly
6. FMD - Face-Mounted Display
A head mounted visor and it comes with gloves and
several external sensor accessories
This enables the user to experience a virtual type of
experience and participate in various activities within
ones home
The technology is too costly in order to manufacture it
to sold cheaply
7. Diesel-Flex
A portable innovative work out
machine
Improves physical health by
making exercise more fun
Has a variety of different exercises and activities:
Punching, kicking, push ups, lifting weights, step
machine, yoga stretches, etc.
Available for purchase with ancillary products
8. Which Product was Chosen and
Why?
Diesel-Flex
Improve the lives of others - innovative technology
A different prospective on training and working out
Increase reflexes’, endurance, speed and strength
Helps warm up – sports/mornings
Lose unwanted weight
A healthier life guarantees a longer one
One product provides a multi-purpose use
Entertaining recreation
9. Demographics
A survey was held
among 60 participants
10 from each age group
Family, friends, relatives
10. Demographics
Disposable Income (Monthly)
9
8
7 Gate Keeper
6 Under $50
Quantity
5 $50~$199
4 $200~$499
3 $500~$999
2 Above $1000
1
0
10~15 16~20 21~25 26~30 31~35 36~40
Age Group
11. Demographics
Hours of Exercise per Week
10
9
8
7 0-1h
6 2-3h
5
4-5h
4
3 6h +
2
1
0
10~15 16~20 21~25 26~30 31~35 36~40
Age Group
12. Demographics
Becoming Fit Working Alone or With Others
18%
20%
Yes
No Alone
With Others
80%
82%
13. Demographics
Most Effective Forms of Advertisements
Newspapers
7
6 Billboard
5
Internet
4
Votes
3 Television
2 Radio
1
Magazine
0
10~15 16~20 21~25 26~30 31~35 36~40
Age Group
14. Target Market
High Schools and
University/College facilities
Appeals to young adults and
to middle-aged adults
Those who yearn for a healthier life-style and are
interested in improving themselves through an
entertaining way
Benefit people who are active and constantly play
sports to keep them top in their game
16. Identifying - Core Product
Reflex
Punching
and Kicking
Increase reflex
Test/measure: strength, speed, and reaction of your
punches and kicks
LED lights blink to determine which box to punch
Scoreboard
17. Identifying - Core Product
Stretching Wall
A panel of light-activated
instructions show stretches
Sensors capture motion
Ensure correct form
Sensors are able to track
progress and amount of
flexibility
First set of cards comes
with the core product
18. Identifying - Core Product
Floor-Linings
Corrects the form of push-ups – Chest connect to
sensor – beeping noise
19. Packaging
Product is made of plastic Inflate/Deflate –
sensors are safely inserted already
Set up: Plug and Inflate
Packaging is the motorized air pump (2 in 1)
Dimension: 0.5m x 0.25m x 0.25m
20. Identifying – Ancillary Product
Different sets - different target markets
Becomes more difficult with each work-out routine - own pace
Beginner set included with core product, higher difficulties must
be purchased - ancillary
23. Budgeting
Budget Breakdown
1%
20%
Production
43% Advertisement
Savings
Warranty
36%
Production including back-up plan ~$150,000
Advertising ~$125,000
Saving/Investment for future products ~$70,000
Warranty: 1 year (expect 3% return) ~$5,000
24. Budgeting – Production
Production Cost
(without incentives):
Expect 1612 to be
produced in a year
($150,000/$93)
25. Budgeting - Advertisement
Newspapers/Flyers – for decline
Magazines - constant replay value
Billboard - 1 full year – constantly reminding
Radio and T.V. Ads – especially for first release
Word-of-mouth and website
26. Promotion Plan
*MAKE OUR PRODUCT SPECIAL*
Limited Addition – Silver – 200 Only
Limited addition over, other colors of Diesel-
Flex, includes: blue, black, white, and green
Advertisements – Funny Ads.
Coupons if business starts to decline
Release Date: In December – Near Christmas
(high demand)
28. Product Life Cycle/Pricing Plan
Introduction
Law of demand/supply is implemented,
demand is high and supply is low (during
festive holidays)
Mostly focusing on advertisement and
informing consumers about the new
product (TV, Radio)
Focus on limited edition promotion, raise
hype for consumers
Prestige Pricing based on consumers
perception
$449.99
29. Product Life Cycle/Pricing Plan
Growth
Mainly backed with
ancillary products
Price increase due to
high demand
Strong ads help keep
customer loyalty
Magazine ads to inform
consumers – ads will be
placed in sporting
magazines
Start using billboard ads
$499.99
30. Product Life Cycle/Pricing Plan
Mature
Sales start to slow down
Target Pricing are implemented – price
that target market will pay
Coupon promotion is used to keep sales
healthy
$359.99
31. Product Life Cycle/Pricing Plan
Decline:
Sales are at a low
Must get rid of inventory
Lowest sale price
Coupons on newspapers/flyers
Bundle pricing with ancillary products
$299.99
32. Future Endeavors, the VS. Diesel-
Flex
An improvement on
the Diesel-Flex
Focuses on a
competitive 1 on 1
workout
Twice the size of the
regular Diesel-Flex
33. Potential Competitors
Other Gyms
Home-gym equipments (Bowflex)
Innovative Health-lifestyle interactive systems
( Wii, Wii-fit)
34. Point of Difference
Available with many ancillary products
Fun, entertaining way of exercise
New, never before done
Improves oneself through fun activities
Inflate and deflate whenever – very simple
35. Safety Hazards
Do not disassemble delicate machinery
Follow instructions properly
Risk transference – warning label that
warns the user to use at own risk and
that the company in no way
responsible for any accidents
Risk Avoidance – Only ones who are
able to use the product may do so
(ages 10+)
36. Channel of Distribution
Stores such as Canadian Tire, Sportscheck
A mixture of indirect and direct distribution will help
properly deliver our products right to the consumers
Two main distribution channels used is directly to
the consumer and to retailers
Direct – internet – rely a lot on the website
(cheaper, less transportation costs)
Indirect – retailers – larger availability to consumers
37. Spokesperson
The puppy Bulldog
known as Diesel
He is cute and very
approachable towards
children
An example of a dog
spokesperson; Taco-
Bell Chihuahua
38. Logo/Symbol
An attractive logo helps attract
consumers
A memorable picture such as
this one helps reminds
customers about the Diesel-
Flex
The logo shows the product
alongside with the mascot
39. Slogan – “Break the lazy hex with
Diesel-Flex”
Rhymes
Easy to remember
Catchy with a punch
Original
Relevant to product
Grabs the consumers attention and persuades them to
purchase