The product design will involve embedding a tracking chip on the hardware of the electronic. The tracking chip will be used to track the location of the electronic device. Every device will have a security code that will only be revealed when the item is stolen. The security code will be kept by the company and access to it will be limited to particular staff members such as those responsible for tracking the stolen devices. This is because the code can be used by unauthorized persons to disable the tracking chip and this will make it difficult to track the stolen items. The security code will be used with the tracking chip to track the stolen items.
Customers will be updated when they need information about the location of their devices. The information will be available on-demand through online communication channels such as email alerts. The services will be offered 24 hours a day including public holidays. This is because the thieves have no specific times for stealing and can strike at any time. Thus the company will offer its services throughout the year to ensure full-time protection of the clients’ properties. It is important to note that the company will only track the precise location of a device when it is stolen to reduce costs (Lehman & Png 2009, p.78).
Production and Distribution
The tracking chips will be sourced from a single manufacturer. The company will do a comparative analysis on the various suppliers of tracking chips in terms of their competence in manufacturing quality products and their prices (Wilkinsin 1996, p.67). One company will then be contracted to manufacture and supply the tracking chips according to the specifications of Safe Track limited. Once the tracking chips are supplied, the company’s staff will be responsible for fixing them on the clients’ electronic devices. The pricing of the product will be based on the value of the electronic device and the longevity of the period of subscription (Amstrong & Kotler 2010, p.45). The customers will have the option of paying for the services on monthly basis or paying the full amount for a specific period of subscription.
The other aspect of production will involve quality assurance. This relates to the effectiveness of the tracking chips in monitoring the movement of the devices. The devices will be recalled after some time such as six months to check the status of the tracking chip. At this stage, the company will repair or replace the tracking chips that are found to be faulty. This is necessary since the tracking chips might be damaged as the clients use their devices. The tracking devices might also be turned off and thus will not function.
The company will use two main distribution channels to sell its products. The distribution channels will include companies that sell electronic devices and direct sales to customers. The companies that sell the electronic devices will distribute the products in two ways. First, they will have the option of buying the services directly from safe Track. In this case, the company will be responsible for fixing the tracking chips on the electronics being sold by such companies. In the second option, the companies that sell electronics will act as agents. In this case, they will sell the tracking services on behalf of the company at a commission (Mercus 1996, p.36). The responsibility of the companies that sell the electronics will include finding clients that are willing to purchase the products. They will also be able to fix the tracking chips on electronic devices. However, they will not be given the security codes. This will help in ensuring that the codes are in safe custody. Safe Track on the other hand will be responsible for tracking the devices whenever they are stolen.
The company that will be contracted to supply the tracking chips will be responsible for delivering them at Safe Track’s premises. The company will then distribute the tracking chips to the companies that sell electronic devices. This will help the company to maintain an accurate inventory of all the tracking chips that have been sold and are in use. The clients will be expected to visit the company’s premises so that the tracking chip is fixed on their electronic devices. They can also visit the premises of companies selling electronic devices to purchase the services. However, the information concerning the location of the devices will be sent to the customers through an appropriate communication system such as email alerts.
The operation plan involves partnering with the police and companies that sell electronics. The police will help in retrieving the stolen items. The company’s responsibility will be to track the location of the devices whenever they are stolen. However, it is the mandate of the police or the security agency to retrieve the stolen devices after being recovered. It is also the responsibility of the police to charge the thieves with theft. This explains why the company has to partner with the police. The companies selling electronics will help in distributing the products. The companies selling electronics are appropriate distribution channels due to their country-wide presence. Thus Safe Track will take advantage of its country-wide presence to reach customers in every part of the country.
This will be beneficial to the company in two ways. First, it will be able to save the costs associated with opening and operating branches in major cities in the country (Wilkinsin 1996, p.87). Secondly, it will be able to increase its sales volume by offering its services directly to the clients as they buy the devices (Mercus 1996, p.68). The clients are more likely to buy the tracking services as they buy the devices. This is because the devices have greater value at the time of purchase. This means that the owners will be more concerned with their safety at the time of purchase and will therefore be like to purchase the tracking services as well.
Amstrong, G &Kotler, P 2010, Marketing: an introduction, Prentice Hall, New York.
Lehman, D & Png, I 2009, Managerial economics: practical approach, Wiley-Blackwell, London.
Mercus, D 1996, Marketing: introduction, Wiley-Blackwell, London.
Wilkinsin, N 2005, Managerial economics: a problem-solving approach, Cambridge University Press, Cambridge.