Marketing Paper on The Introduction of a New Product “Self-driving truck.”

What is the product name?  Describe the product.

The name of the new product is a “Self-driving truck.” Compared with the regular rigs, the product will provide smoother driving experiences and cost effective in terms of fuel consumption. Furthermore, the self-driving car will use specialized computer systems to design and operate efficient break systems. Other perceived benefits of the new product are their abilities to run longer distances or routes and minimize wind resistance when on the road. Moreover, the trucks will use sensors and comprehensive software systems in controlling, navigating, and driving the vehicles. The trucks will establish and sustain a complete internal map system detailing the surrounding regions and apply sensor technologies such as radar and high-powered cameras and sonar to move on the roads.

Identify and explain which market segmentation variable you are using

Behavioral segmentation will facilitate the introduction of the new product to the consumers. Market segmentation variable in this particular case is the perceived benefit that consumers will seek from their usage of the self-driving trucks. The needs-based segmentation variable will help in the design of appropriate marketing strategies.

Why did you choose this method of customer segmentation?  Be specific

The consumer segmentation variable emphasizes on the specified needs, the alleged value, and different benefits that will accrue from the purchase and application of the self-driving trucks. The method of consumer segmentation will enable the company to develop products with unique specifications on quality levels, performances, customer services, among other essential considerations. Lastly, behavioral segmentation of consumers will provide specific information such as user and loyalty status, consumer readiness to accept the new product, and the alleged attitude towards the self-driving trucks.

Who is the target market?  Be specific.

The target market is the global freight transportation industry. In particular, the company targets courier service & parcel delivery services among other related companies. Self-driving truck fit such companies because of the nature of non-palletized and light goods. Companies such as Amazon dealing with different transport and logistics services will benefit from the introduction of self-driving trucks. Additionally, companies dealing with consumer commodities such as Pepsico and Walmart will use the proposed product to access their widely dispersed market segments.

What are your product’s benefits to the target market?

The self-driving trucks will improve efficiency in supply chain management. Besides, the vehicles will reduce cases of truck accidents and time wastages in traffic. Specifically, the self-driving truck will reduce fuel consumption and reduce the stress associated with constant and daily driving especially when doing long distances. The technologies (such as the advanced radar systems and Advanced Driver Assistance Systems) behind the self-driving trucks aim to increase the safety of highways. Besides, the introduction of self-driving lorries will solve the prevalent problem of shortages of drivers in a highly lucrative industry.

At what price will your product be introduced?  Why?

The company will introduce the product at a price of approximately $300,000 per truck. The relatively price is reasonable given the numerous security features inside the self-driving cars. Moreover, the vehicles will help targeted companies to increase general levels of productivity, fuel efficiency, facilitate cost-savings, and reduce traffic on highways.

What new product pricing strategy are you using?  Why?

The company will use price-skimming strategy to facilitate the introduction of the new product (self-driving trucks). Under this strategy, the company will set a higher initial for the new commodity. The plan will aim to accrue maximum profits or revenue from the initial sales of the product to the targeted consumer segments.

What objectives will be accomplished by using this strategy?  Be specific.

The primary objective of the proposed pricing strategy will be to help the company in skimming revenue layer by layer. Thus, consumers who need improved efficiency in the trucking business will purchase the trucks. Subsequently, the company will progressively lower the prices stepwise as the product gains increased market acceptance.

Why is the product worth this price?

The product is worth the $300,000 initial price tag. The self-driving cars will incorporate an expensive and unique product that will attract additional costs of production. Lastly, the trucks will enhance the overall quality and nature of transportation services.

Identify and explain what happens to each of the 4 Ps decisions you make for your product, at each stage of the PLC?

Based on product decisions for the product, the company will emphasize on quality development of unique features. Based on price decisions for the product, the company will use the skimming strategy to set an initial high price given the anticipated increases inefficient operations. Based on placing decisions for the product, the company will target specific entities dealing with freight businesses. Lastly, the promotion decisions for the product will involve the use of various platforms such as print and online platforms to promote the new commodity.