Kenny_Zink_GB530_Unit 2_BEMP Assignment
- 1. R u n n i n g h e a d : B r a n d e x t e n s i o n m a r k e t i n g p l a n | 1 Winnebago Ind. Kenny Zink Kaplan University GB530 Professor Jerry Haenisch June 1, 2015
- 2. R u n n i n g h e a d : B r a n d e x t e n s i o n m a r k e t i n g p l a n | 2 2.0 Situation Analysis Winnebago has established themselves in the RV manufacturing market as they rolled out their first RV in 1966. Now, Winnebago is looking at ways to design and develop a new extension of their Class B RV line in order to provide a more Eco-Friendly version that will bring pride to those who drive it because it has less of an impact on the environment. Marketing and development will be the key to developing the best design and features that are relevant to the customer as well as the market. The marketing will be influential in promoting the new brand and make it appealing to Winnebago’s current customer base as well as capturing a new segment of customers that wouldn’t normally think of buying an RV. 2.1 Market Summary Winnebago has been in the business long enough to understand the needs of their customers as well as attributes that they desire most. This information will be leveraged to better understand how their new design will meet the needs of the customers, how they can serve them better, and how they can communicate that their ideas are important as well as limiting the impact they have on the environment in which they operate. Target Markets Recreational Family Middle Class Eco-Friendly 2.1.1 Market Demographics Geographic’s Winnebago’s set geographic target market is the continental 48 states. As this geographical area is conducive to the users of recreational vehicles particularly in the Class B category. The total targeted population is 9 million users (Recreational Vehicle Industry Association RVIA, 2015) Demographics Today’s typical RV user is around 48 years of age, married, with an annual household income of $62,000 (RVIA, 2015) The age range for most RV users is in the 35 to 75 years old The age range that has seen the most increase in the number of RV users is those 35-54 years old More than 11% of households in the 35 to 54 year old age range own an RV Behavioral Factor’s Flexibility and convenience – RV users choose this mode of recreational because they can go where they want when they want without all the stress and hassle that is associated with other modes of travel
- 3. R u n n i n g h e a d : B r a n d e x t e n s i o n m a r k e t i n g p l a n | 3 Comfort – The latest and greatest version of RV’s offer many of the same amenities you will find at home, but while you are on the road or at a campground Family Appeal – RV travelers say that traveling in this form helps strengthen family relationships and communication which is important for their leisure experience Affordability – The cost of traveling by RV can be up to 59% less than other modes of travel according to PKF Consulting making vacations for families more affordable Lure of the Outdoors – RV’s allow users to enjoy the outdoors whenever they want with the comforts of home and some models allow for the use of ATV’s, snowmobiles, and motorcycles Versatility – RV’s are also used for other forms of entertainment like concerts, tailgating at games, shopping, or other hobbies 2.1.2 Market Needs Winnebago is looking to diversify its selection of quality made RV’s that are designed specifically for the average family user. Using more economically and environmentally friendly materials that will lessen their carbon footprint. Winnebago will also use more recyclable materials in their production and alternate fuel sources. Winnebago will focus on the following benefits that are essential to the customer: Quality Craftsmanship – Customers want a product that will last for a long time because they work hard for what they earn and don’t want to just throw money away. They also want a quality product with a quality price to make their purchase worth the investment. Quality Design – They want an RV that is designed with them in mind and don’t want the slim down version to accommodate their specific budget. They want amenities that are important to feel comfortable while on the road, but also comfortable on the budget. Quality Service – They want to know that when they are out on the road and something goes wrong that the company is going to do their best to help solve the issue and get them back out on the open road. The want quick friendly service that helps them feel like they are a part of a family and not just a number on the bottom line. 2.1.3 Market Trends Winnebago will distinguish themselves from their competitors by marketing RV’s that are designed for those who want to go out on the open road without impacting the environment or losing the home like comfort. The average RV user is not distinguished to one age group or one specific design, so the domestic market provides significant opportunities to build new users. The fastest growing segment for RV’s is the more fuel economic brands as gas prices continue to rise and the average amount of expendable income continues to fall. Current market trends associated with lessening the impact on the environment have also called for the changes in RV design to help limit the amount of carbon emissions, carbon footprint, and a more environmental friendly design. Which is why Winnebago is looking at incorporating solar panels as an alternate energy source, minimizing the waste of materials through the use of computer aided design, hardwood optimization to help maximize the yield, recycling of the sawdust for animal bedding, reuse of side panels for the actual doors where they
- 4. R u n n i n g h e a d : B r a n d e x t e n s i o n m a r k e t i n g p l a n | 4 are cut out, recycle 1.5 million pounds of plastic each year. All just a part of our greener and leaner manufacturing procedures and policies (Winnebago, 2015) 2.1.4 Market Growth As the economy continues its recovery RV’s have seen an increase in sales which looks to continue as baby boomers begin to retire. The financial crisis of 2008 hit the industry hard and there was a significant amount of layoff’s and reductions in production, but 2015 looks to be a record year as January saw a total of 28,494 units shipped an 11% increase than the same month in 2014 (RVIA, 2015). Here is what the shipments looked like over the past five years as well as the percentage change year over year: 2014 356,735 11.1% 2013 321,127 12.4% 2012 285,749 13.3% 2011 252,300 4.1% 2010 242,300 46.2% 2.2 SWOT Analysis The following SWOT analysis captures the strengths and weaknesses inside Winnebago Industries and the opportunities and threats they face from competition. 2.2.1 Strengths Strong, Reputable Brand Exceptional Service and Warranty Extensive Research and Development Capabilities 2.2.2 Weaknesses Overdependence on the U.S. Market Economic Conditions and Per Capita Disposable Income Limit Distribution Channels 2.2.3 Opportunities International Market Eco-Friendly RV’s Demand for Smaller RV’s 2.2.4 Threats High Gasoline Prices Increased Competition Strict Federal and State Regulations 2.3 Competition Winnebago’s competition comes from companies like Fleetwood, Artic Fox, Airstream, and Jayco, but has been successful at stifling the competition by offering the best service and warranty in the industry. Winnebago has also created a unique computer aided design system
- 5. R u n n i n g h e a d : B r a n d e x t e n s i o n m a r k e t i n g p l a n | 5 that allows them to maximize the yield of all their raw products while at the same time minimizing the waste. They also test all the parts, products, and services to ensure they are the best in the industry. “The Winnebago Industries commitment to providing high quality, great value, efficient design and eye-catching style in recreation vehicles remains a driving force for the company” (Winnebago, 2015). What allows Winnebago to be one of the top RV manufacturers is that they build everything in house and from scratch and don’t use any after- market parts in their manufacturing process. Meaning that everything the consumer sees that has gone into a Winnebago RV was made and manufactured by Winnebago and fro Winnebago. This allows Winnebago to lower manufacturing costs which in turn lower the price of their products. 2.4 Product Offering Winnebago Industries Currently offers Several RV Versions: Class A RV’s available in both Diesel and Gas versions (Motorhomes). Class C Motorhomes which are built with similar design and amenities of the Class A, but on a much smaller chassis. Class B Motorhomes which are the more fuel efficient models built on a van chassis. Towables which come in a range of sizes according to the specific floor plan you desire There final product is in development which is the Eco-Friendly Class B Motorhome which will offer style and amenity upgrades to help limit the impact on the environment as well as alternative fuel energy. 2.5 Keys to Success Winnebago’s keys to success will be to continue to offer the best products and services on the market today. Continue to provide the best warranty and service that customer’s expect during and after the sale. Also, offering the best service and parts warranty in the business. They will also look at designing and manufacturing the most dependable, reliable, and quality RV’s in the industry. Winnebago will pride themselves on creating the most efficient and effective customer service and satisfaction strategy in the industry in order to ensure they capture the greatest segment of the RV market. 2.6 Critical Issues As a company that has been in business since 1958 and making their first RV in 1966 the critical issues for Winnebago are: Establishing itself as the market leader in the RV Industry Create more efficient and effective distribution channels to help supply their products to all areas of the U.S. and Canada Create and efficient and effective management strategy that will allow Winnebago to leverage the company in a more productive and profitable direction Constantly monitor the effectiveness of those strategies against meeting the needs of the consumers and remaining one of the best customer service RV manufactures in the industry
- 6. R u n n i n g h e a d : B r a n d e x t e n s i o n m a r k e t i n g p l a n | 6 References: Recreational Vehicle Industry Association. (2015). RV business indicators. Retrieved from http://www.rvia.org/?ESID=indicators Winnebago Industries. (2015). Company profile. Retrieved from http://winnebagoind.com/company