THE GREEN BIN

The Green Bin

The Green Bin

Introduction

Test Marketing

In this paper, we will conduct a market test analysis of Green Bin. On the basis of the results from the market test, we will formulate the commercialization process of Green Bin.

The company's aim to deliver a unique” Green” campaign to chosen target market through promotion mix in order to achieve the product objectives. The initial marketing Budget for Green bin is £ 5,000 which will be split between the major promotion mixes such as:

Tets marketing

Commercialization

Advertising

Personal selling

Public Relation

Trade fairs and Exhibitions

Printed Brochures

The purpose of conducting market test of Green Bin is to seek direct knowledge of the response of people of London to Green Bin, in order to obtain certain information necessary for a research.

The market test for Green Bin, will be done before the launch of a final product, in order to assess their acceptance of the public of London.

When market testing is aware of the acceptance, reception, printing, public reaction or behavior to the Green Bin and, based on the results, whether it is feasible to launch a new product if it is necessary to make some changes before launch, or launch is definitely feasible (Kauffman, 2001, pp. 90-105).

Ideas for Green Bin will go through three tests:

1) the market potential,

2) the feasibility financial and

3) support operations.

Before placing the idea of Green Bin in the preliminary design, we will submit to the analysis needed to be organized around these three tests (Tauber, 1997, pp. 80-84).

After the test, we will conduct screening analysis to identify final decision on marketing and production of a Green Bin. After the initial development, more extensive tests will be done through market testing and pilot operations before making the final decision to introduce the Green Bin in London. (Silk, 2001, pp. 171-191).

The idea of a Green Bin will undergo a typical financial analysis through the calculation of an approximate yield on investment. To do this, it is necessary to estimate a cash flow investment, and revenue and cost of product sales in the future.

According to our estimation, the Green bin will reach sales of £82,700 in the first year. By 2014 the company pays back the total investment of £123, 00 made in the first year of the lunch of Green bin System. The Green bin Gross profit rose further throughout the years, which clearly shows that the promotion of green environment is an interest of many communities which opt for resources waste that is profitable, creative, and practical.

In the initial stages of product development of Green Bin it will be difficult, if not impossible, to estimate the cash flow with reasonable accuracy due to the severe lack of security to be on the market acceptance, volumes, profits and costs. However, estimates are needed as soon as possible to be able to feel the financial potential of a product. These estimates can be updated if more information is available (Fader, 2003, ...