Introduction to Marketing
This paper involves the design of a marketing strategy for a product, service, or a company.
Please do a little bit of research by going to the company website http://modernmeadow.com
The core of the paper is by using publicly available sources of data and market research that you may conduct, analyze the industry in which Modern Meadow product competes, the customers, the competitors and the strengths and weakness of the company.
And in this project, we will focus on only the "Leather" of Mondern Meadow, which will be used targeting high end handbags which will start at high price.
Modern Meadow is currently in talks and may or may not have been given an offer from a luxury handbag conglomerate (company type such as THE ROW)
AND here are some information I was able to get from the company:
-Leather takes about 6 weeks currently with the rate limiting step being the growth of cells. This can be parallelized but it still takes a couple weeks. Tanning takes another week or so.
– Cost of raw materials is currently high per square foot but will fall as we scale and optimize. We anticipate achieving COGS of a few hundred dollars per square meter (tens of dollars per foot) as we achieve early scale. This is expensive but competitive with high end leather (exotics and premium).
– Our technology is well protected thru multiple patents and extensive know-how which is unique and not easy to replicate.
– For Capex questions and estimates on manpower for running equipment at scale, I would encourage you to take a guess. We are looking to achieve significant automation and of course make sure our equipment is durable/reliable/highly utilized.
With the information provided above in mind, the task for this paper is to write a situation/ industry analysis with regards to "Leather" of modern meadow.
Since several people will be in charge for this paper, YOUR TASK IS TO FOCUS ONLY ON
-company (Situation Analysis for Modern Meadow)
-profitability (Industry Analysis)
For this, you may need to research similar industry for information. For the profitability, please focus on luxury handbags as target market of modern meadow. It is thought that there is no competitors for Modern Meadow now since it is a new technology/ science but in the long term would be companies working on reaching the same kind of technology as Modern Meadow. With regards to pricing, the prices of the product should start at highest price and with time generally become cheaper since demand goes up.