Innovator intelligent air conditioner system: marketing plan and pricing strategy

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Date
2009
Authors
Yee Khim, Ching
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Innovator was founded in 2008 by three Information Technology Technopreneurship students from Universiti Sains Malaysia. Innovator introduced a product that is able to improve people' s lifestyle and to help small businesses to save cost in their usage of the air conditioner. The product offered by Innovator is an Intelligent Air Conditioner System (ICONS). The ICONS box consists of two motion sensors. a temperature sensor. and a multi-input controller. The box will be controlled by an Artificial Intelligence Technology software installed in a personal computer. ICONS is able to switch on the air conditioner when the two motion sensors detect someone entering a room. It will also switch off the air conditioner when the last person leaves the room. ICONS is also able to adjust the air conditioner temperature according to the total number of people in a room. Home users and small businesses are the targeted market segment for Innovator with a forecast market size of 522.410 units in 2010. Innovator is getting RM 150,000 startup fund from the management team. Innovator is planning to participate in the business plan competition organized by MDeC to secure an additional RM150,000 preseed fund to support the operations of the company. ICONS is targeted to sell at RM350 per unit base on the pricing strategy. The sales projection for the first year is 1,200 units, for the second year is 2.400 units and for the third year is 4,800 units. In the first three years, Innovator is projected to have RM2,940,000 in total sales revenue. A research has been carried out to determine the acceptable price for ICONS. if the selling price influences the purchase decision. whether e-marketing program is preferable to the ordinary marketing program and the potential of air conditioner sales is in the increase for the next six to twelve months. A 22 questions questionnaire was sent out to 150 samples. A total of 109 responded after 3 weeks of sampling. In the analysis it \vas found that 54% of the respondents selected RM350 as an acceptable selling price for ICONS. 46% of the respondents agreed that the selling price influence the purchase decision. 44% answered that e-marketing program is preferable to the ordinary marketing program. The survey also indicated 57% of home user and 72% of office user is planning to purchase the air conditioner in the next 6 to 12 months.
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