Retail Price Of Trap Ease example essay topic

If a man [can]... make a better mousetrap than his neighbor... the world will make a beaten path to his door. True, but only if the world perceives more value in it than the next door neighbor's. Statement of the Problem The problem Martha's currently encountering is the fact that despite the publicity and the proven uniqueness of Trap-Ease mousetrap, both demand and sales fall radically short of expectations. The purpose of this analysis is to identify the root of the problem and how it can possibly be solved. Price It was stated in the article that the Trap-Ease was approximately five to ten times more expensive than the standard traps already present in the market. This is largely due to the innovative concept of trapping mice in a mess-free method, and not as a consequence of more expensive raw materials.

Trap-Ease utilizes plastic that is generally less costly than wood, thin steel metals and springs which compose the traditional mousetrap. No matter how much more expensive the cost of a new product is, it must not cost higher than the existing unless it possessed mechanics incredibly special, inevitably making customers feel that they are getting the value for their money. Since the innovative plastic mousetrap aims to reach the market with its new concept (something abstract), it will take much more than a low price for buyers to realize its value. Decreasing the introductory price, among other factors, will help increase sales by attracting new shoppers or diverting them from the traditional product. Once Trap-Ease has firmly established its name in the market by gradually increasing market share, prices may be increased eventually, but not as of the moment.

This does not imply that prices must be lowered in a hasty manner. Management needs to price the products that would at least break even all the costs incurred for the first year or so. .".. customers appeared to offer little initial price resistance". This only pertains to buyers who have already bought the product. The statement in the first sentence automatically limits the already small target market that Martha has pursued by disregarding those who did not buy the product for reasons that may or may not have included the price factor. Furthermore, there had not been enough repeat buying in the part of the customers for reasons we have yet to learn.

We can without a doubt say, however, that prices are influential in the process of decision-making. According to research, Martha has discovered that Trap-Ease has generally been used as a display material or treated as a novelty item rather than a weapon against mice. The target market does not seem to be comfortable using such an expensive tool for everyday mice control. Furthermore, the product has been introduced as something disposable.

If customers had to buy these mousetraps and use them only for a brief period of time, they would certainly not pay five times as much if a cheaper one is available. Product Though change is constant, most people are not used to welcoming it with eagerness and enthusiasm. So too with new products. It would take much effort and creativity for new products to penetrate a market that already consists of similar merchandise. How a new product will fare would rely highly on several factors such as quality, design, features, brand name, packaging, and services offered. With its proven usefulness and effective trapping mechanism, the traditional mousetrap has very well gained its niche in society over the years.

Trap-Ease, possessing a rather unique approach to mouse-trapping, offers quality inventories made of plastic which guarantees the full proof mechanism. Its design and features enable consumers to avoid having direct physical contact with the mouse throughout the whole ordeal of setting up, trapping, and disposing of the revolting creature. Opposite this is the traditional mousetrap where one has to personally pull the metal spring bar to set the trap. Once a mouse is locked in, blood is expected to spurt from the sudden snap of the mechanism. This will be a nauseating sight aside from the mess caused by the whole process of trapping. In addition to cleaning the immediate environment, one has to carefully pull the metal spring bar back to release the mouse into the trash can.

Afterwards, the mechanism must be washed off the remains of the previous mouse. With Trap-Ease, none of these need necessarily be done which would save users time to engage in other things. In addition to this, the modern mousetrap is durable owing to its simplistic mechanism. Furthermore, users need not agonize over the risk of catching their fingers under the device during set up nor is it edible like mothballs for children to eat. Aesthetically speaking, Trap-Ease is designed such that the trapped mouse would be concealed as opposed to the traditional mousetrap where the creature is repulsively visible. Viewing this in a different angle however, if the mousetrap is nontransparent as it presumably is, then it is no safer for the children than the traditional spring mousetrap.

Since Trap-Ease does not appear like a mousetrap, children will see it around the house wondering what it is. By nature, these children will play with the device, even opening the lid where the mouse is trapped. If the creature is still alive, it will run out and startle the child. Besides the direct physical contact that may endanger the child in countless ways, the mouse escapes yet again. The very purpose of the mousetrap is defeated. On the other hand, if the mouse has been dead for quite some time in the Trap-Ease, what would befall on the child but filthy mouse excretion with its foul-smelling, hardened corpse?

Again, the child is exposed to danger. Lastly, the odor of an un-sanitized creature such as a mouse in a dense, compacted area is repulsive in itself. Would the enclosed Trap-Ease prevent the odor from diffusing or would it serve as an indication of a rotting mouse? The point being driven at is the inaccuracy of the phrase "Safe for kids and pets" in its ads. The company must remember to emphasize what their product is unique for and avoid half-truth statements.

This must be pointed out owing to the possibility that customers may indeed believe in the guarantee so much so that if the situation above does occur at one point or another, they will be greatly dismayed and Trap-Ease will be eternally stained. It will eventually kill the product. Trap-Ease can either be reused or disposed depending on the customer's preference. It is no different than the traditional mousetrap in this sense, yet again failing to justify Trap-Ease's quintuple-fold price. Brand name is unique and defines concretely its purpose. It sounds well enough to be remembered and through correct marketing and advertising, Trap-Ease has great potential of gaining the majority market share in the future.

In terms of packaging, Trap-Ease has a great deal of room for improvement. Since a pack contains two mousetraps, which undoubtedly influences the price, management needs to think of a strategy that would entice customers to give the innovative mousetraps a second look. It can package Trap-Ease in a way that would declare "Buy One, Take One!" . This scheme will definitely make customers feel as if they are getting a bargain. Whether they need it or not, they would not miss the chance of a bargain that is readily available and within reach. This tactic must obviously be coupled with the decrease in retail price.

Net profits for both Trap-Ease America and retailers will be cut short but only for the meantime. Infiltrating the new mousetraps into the market and establishing a stable position must indeed be prioritized if the company seeks to remain secured in the following years. Currently, there are no services offered with the purchase of the product. There are no customer-inquiry toll-free lines nor are there incentives for buying Trap-Ease.

Despite all the problems cited regarding Trap-Ease, publicity has escalated while demand remained a constant disappointment. These symptoms seem to be pointing to only one direction: FAD. The source of all the hype and excitement over the innovative product is due to its new entry in the market during a certain period of time. Trap-Ease has merely been taking advantage of the trend, which is not expected to last. Through time, this fad will gradually diminish and sales will spiral.

If sales continues the way it has been for the first few months, investments are not expected to be recovered. This is precisely what the Trap-Ease America investors were concerned about when they mentioned that they faced a "once-in-a-lifetime" opportunity. Once the trend fades, the size of the market for Trap-Ease will be negligible. This is the main threat that challenges Trap-Ease and not so much the traditional mousetraps, rat poison, and fumigation companies. Due to the reasons stated in the preceding paragraphs, there has not been enough repeat buys to at least break even, nor has it fared well, it being a new product in the market. RECOMMENDATION: Price and Product As stated earlier in the analysis, the introductory suggested retail price of Trap-Ease is simply too high.

Chief factors such as demand and sales, market penetration, product positioning, and investment recovery, among others, are at stake if prices are not decreased. One way to address this problem is to source Trap-Ease America's plastic manufacturer for the mousetrap. Surely, some manufacturer will produce the plastic mousetraps for less than the current 31 cents ($0.31). If the company fails to locate such a manufacturer, management may opt to choose a different type of plastic, that of a slightly lower quality, to be utilized in the manufacturing of the products.

By producing a cheaper and more disposable mousetrap, final cost of goods must plunge. Another alternative is to import the manufactured plastic from countries like China and Thailand. These countries have been known to manufacture all sorts of products for the lowest possible cost. If Trap-Ease America can find an international manufacturer and strike a conservative price for shipment and handling, prices may be reduced yet again.

The concept of full disposable mousetraps remains an idea that none has actualized. The fact is, mousetraps are something people do not prefer to reuse. By utilizing cheaper, lower quality plastic, Trap-Ease will provide the ideal sanitary trapping device at the lowest possible price while earning generously itself. When setting the price, however, management must be mindful of breaking even in order to safely recover investments. To further lower costs, the products may be packaged per piece instead of by pairs. Retail price may then be cut to half in addition to the lower cost of raw materials.

With these in mind, the company must hold a test market for the product to ensure its effectiveness and sanity, as its trademark seems to be. As mentioned earlier, the company must not prioritize exceedingly high net profits over sales. Even with minimal profit, the company will earn much through volume. This would be supported by a wider array of market, tapping not only local retailers and wholesalers, but international entities as well. Along with these suggestions are allowances, credit lines, and discounts that could be offered to retailers, wholesalers, and distributors of the product. With these incentives in mind, Trap-Ease's clients will be encouraged to sell the innovative mousetraps, with both parties earning substantially.

Trap-Ease America lacks customer service as cited in the analysis section of the paper. Therefore, customer service hotlines and offices must be developed on strategic locations, ensuring its accessibility to all its target markets. This means local, national, and international. Through these services may clients address their complaints and insights regarding the product. Sales and deliveries will be monitored and followed-up effectively through this method, and efficiency will be established. Customers would eventually have high regards for Trap-Ease America which would enable the mousetrap company to build long term, value creating, and trust building relationships with its clients.