RFID market, which is still in its infancy makes it an uphill task to build a competitive marketing plan which involves establishing pricing and promotional strategies.
Target Market: Third Party Logistics Provider (3PL), Trucking services, Air, Ocean, Rail Freighters, Warehousing facilities.
Strategy: Conventional Marketing plans cannot be used as a guideline to RFID based solutions. RFID market research shows, the biggest reason why our target market wants to go for RFID is customer compliance. This is an indicator to design a three pronged strategy.
First strategy will be to approach our target market itself with benefits of implementing RFID solutions. Promoting compliance and taking steps towards industry standards will be a big effort towards this cause as achieving these tasks itself, is battle half won.
Second strategy will be to approach customers of our target market and study their logistics and functions which results in developing solutions that will make us compliant and certified with customers. This will help us go to the target market with confidence and be one-up on competitors.
Third strategy will be to form an alliance with large ERP software providers and develop solutions compatible and aligned with their software. This will aid our second strategy while approaching customers of our target market.
Pricing: Although pricing strategy and calculations will be complex, some basic rules will be followed:
1. All prices will cover our costs.
2. Prices will reflect market changes,competition and demand.
3. Pricing method followed will be Markup pricing.
Advertising: Initial advertising plan will be low key and direct. After a successful implementation with one customer, RFID and Transportation related Trade journals will be used to advertise our solutions.
Packaging Strategy: Our services will be provided to clients as a complete solution package comprising of RFID and GPS hardware and software.
Sales Forecast: First year will be spent in development. With reasonable expectations, in second year, company expects to have atleast two to three projects. Each project is expected to bring $500,000 in revenue. Sales Projection can be in the range of $1 million in second year. However company is expected to be profitable in third year.