Marketing Strategies for Lock-Awn Antibillow Device: A Case Study

This case study examines the marketing strategies for the Lock-Awn Antibillow Device, a startup aiming to manufacture a product for recreational vehicles (RVs) in the United States. The analysis includes an executive summary outlining the problem, scope, and academic concepts, followed by a detailed PESTEL analysis of the US market and a SWOT analysis of the Lock-Awn firm. The study evaluates market attractiveness for EMR innovations using industry analysis tools, identifies potential target markets, and explores marketing strategy decisions, including target market positioning and marketing mix development. The case study also covers sourcing of funds and concludes with recommendations, providing a comprehensive overview of marketing research and strategic planning for a new venture in the RV industry. The document is a comprehensive analysis of the RV market, including political, economic, social, technological, environmental, and legal factors, as well as financial performance projections.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author Note:

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Table of Contents
Part 1. Executive Summary:........................................................................................................1
Identification of the problem:..........................................................................................................1
Scope of the problem:......................................................................................................................1
Academic concepts and theories:.....................................................................................................2
Diagnose of the strategic issues and key problems:........................................................................2
Part 2. Appropriate analysis: Conceptual, situational, and financial performance:.........................2
PESTEL of the United State of America:........................................................................................3
Political:.......................................................................................................................................3
Economic:....................................................................................................................................4
Social factors:..............................................................................................................................5
Technological factors:.................................................................................................................5
Environmental factors:.................................................................................................................5
Legal factors:...............................................................................................................................6
SWOT of Lock-Awn Antibillow Device manufacturing firm (case study):...................................6
Evaluation of the market attractive for EMR innovations using industry analysis tool (PESTEL
and SWOT) (corresponds to 4A):....................................................................................................7
Identification of the potential target markets for Lock-Awn Billowing Device (corresponds to
4B):..................................................................................................................................................7
(1) Needs:................................................................................................................................7

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(2) Identification:....................................................................................................................7
(3) Attractiveness:...................................................................................................................8
(4) Profitability:......................................................................................................................8
(5) Positioning:.......................................................................................................................8
Marketing strategy decisions Eric and Mary Reynolds would have made (corresponds to 4C):....8
Target market and positioning strategy with justification (corresponds to 4D):.............................8
Marketing mix to be developed (corresponds to 4E):.....................................................................9
Sourcing of funds (corresponds to 4F):...........................................................................................9
Part 3. Conclusion and recommendations:......................................................................................9
References:....................................................................................................................................10
Appendices:...................................................................................................................................13

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Part 1. Executive Summary:
Identification of the problem:
Marketing research plays a very important role in forming business decisions in the
business organizations. Zikmund et al. (2017) define the term marketing research as ‘the
systematic and objective process of generating information to aid in making marketing
decisions.’ Thus marketing research refers to gathering of market information which in turn
finds application in decision making process. Appropriate business decision and effective
implementation of the decisions lead to high performances of the business organizations
concerned. That is why management bodies and owners of the business organizations have to
conduct market research prior to making business strategies (Wedel & Pieters, 2017). The aim of
the report would be conducting a marketing research to support the formation of marketing
strategies of a startup firm based in the US which aims to manufacture the Lock-Awn antibillow
device which would find use in the recreational vehicles (RVs).
Scope of the problem:
The scope of the paper would include the recreational vehicle industry in the United
States. The scope of the research may also include mentions of related industries like transport
industry. The researcher would take into account the two tools namely, PESTEL and SWOT.
The findings from the research would be used to form the marketing strategies of the startup firm
run by Eric Reynolds and his wife Mary Reynolds (case study).

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Academic concepts and theories:
The research would take into account several academic concepts and theories. The main
concept which would form the basis of the entire research would be marketing research. The
second main concept which the research would take into account would be consumer behavior.
The three models which the research would take into account would be PESTEL, SWOT and
STP (segmentation, targeting and positioning).
Diagnose of the strategic issues and key problems:
The strategic issues which the paper would deal with would be the high level competition
already existing in the RV market in the US and challenges which startup firms eyeing to enter
the market would face like scarcity of resources. The RV market in the United States is already
extremely competitive with over 10 million people in the country owing RVs till 2017
(Businesswire.com, 2019). The main players in the market are REV Group, which are listed
firms having access to share market to raise immense capital to support their market operations
(REVGROUP.com, 2020). This presence of strong and established competitors presents
problems before the startups to enter the market and acquire finance to operate sustainably.
These newly entering startups would also face problems of acquisition of customers to market
their products. Thus, the two problems which the study would explore would the problem of
acquisition of customers and sourcing of financial resources.
Part 2. Appropriate analysis: Conceptual, situational, and financial performance:
The following section would analyse the market situation in the United States of America
followed by formation of the market strategies for the RV firms based on the concepts as well as
models mentioned above. Finally, the section would delve into the projected financial

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performances which the RV start-up in the case would aim to achieve in the light of the findings
from the PESTEL as well as SWOT. The strategy which would be adopted to conduct marketing
research would be secondary analysis.
PESTEL of the United State of America:
The following section would explore the market situation in the United States of America
with references to the RV industry:
Political:
The US is a politically strong country which has led to development of different
industries like RV industry and transport industry. Dafa’alla, Hussein and Adam (2017) point out
out that political stability enables the government to form laws which direct investments and take
up national development strategies, which ultimately lead to development of industries. The
political stability index of the US stood at 18 in 2019 (Radu, 2020). This political stability
enables the people to visit different places which in turn are encouraging demand for recreational
vehicles in the country. This statement can be established on the basis of the fact that RV market
in the United States is highly developed. The number of RVs shipped stands more than 500000
units which shows that the RV market in the country is expanding (Businesswire.com, 2019).
The second political factor which affects the RV market of the US is the bilateral
relationships which Washington shares with foreign country governments. The US government
has strong bilateral relationships with several top car manufacturing nations in the world like
India and Germany (State.gov, 2020). This enables the RV firms in the country to import
vehicles and ancillary units to meet the mounting demands for the RVs (Appendix 1)
(Statista.com, 2020).

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The two major political threats which impacts the RV market are the US-China Trade
War and terrorism. The ongoing trade war between the US and one the biggest manufacturing
country of cars and car parts at cheap rates namely, China have negative impacts on the RV firms
(Zumbrun, Solomon & Lewis, 2020). The RV firms would have to acquire RVs and ancillary
parts from other nations at higher prices which would escalate their cost of the RVs. Terrorism
poses severe threat to the United States and its resident (Dhs.gov, 2020). The residents in the
country feel threatened owing to terrorism and generally do not make recreational trips which in
turn lead to decrease in the demand for RVs. Thus, terrorism has negative impacts on the RV
industry in the United States.
Economic:
The economic and social situations in the United States have strong impacts on the RV
industry in the country. The first economic factor in the US which boosts the growth of the RV
industry is the growing GDP of the country. The US attained a GDP of $bn 21200 in 2019 which
increased from $bn 20544.34 in 2018 (Tradingeconomics.com, 2020). This means that the
country is experiencing increase in the value of finished products produced. This generally
means that the country is undergoing further economic development and generation of
employment opportunities (Baah-Boateng, 2016). More employment opportunities generally
means that residents in the country have more disposable income which enable them to purchase
RVs to make trips to countryside.
The second economic factor which drives the RV market in the US is the strong financial
market of the country. Strong financial markets make easy finances to the firms (including RV
firms) which boosts their productivity (Abualoush et al., 2018). The United States of America is
the home to top stock exchanges like the NYSE which enable the listed companies to acquire

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capital by floating shares which in turn drives their operations (Nyse.com, 2020). The US is the
home to leading banking companies like the Bank of America which provide loans to both firms
(including RV firms) and consumers (Bankofamerica.com, 2020). These factors boost the
production of RV vehicles in the companies and purchase of RVs among the consumers.
Social factors:
The social factors in the US are favourable for the growth of the RV industry. The
Americans love travelling to hills and beaches which in turn boosts the demand for RVs
(Travel.usnews.com, 2020). The second social factor in the US which boosts the growth in the
RV industry is increase in the disposable income among the Americans (Businesswire.com,
2019). This factor encourages more Americans to purchase RVs to make trips to countryside
destinations which push up the sale of RVs in the country.
Technological factors:
The technological factor which boosts the RV industry in the country is high penetration
rate of internet. The high penetration rate of internet enables the people to navigate places more
easily using GPS (Bajaj, 2016). This factor encourages more people to visit distant places in RVs
or in other words, boosts the demand for RVs thus bringing out revenue generation in the
industry.
Environmental factors:
The environmental factors play very important roles in the growth of the RV industry in
the US (EPA.gov, 2020). This is because, the consumers owning RVs make trips to areas like sea
beaches and country side locations. Thus, healthy environmental conditions in these regions
would attract more travellers, thus boosting the sale of RVs. However, rising incidences of

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natural calamities in the country would make it risky for people to travel in RVs (Eschner, 2019).
This factor would lead to fall in demands for RVs in the country and in turn reducing the revenue
generation in the RV firms.
Legal factors:
The RV firms should comply with the laws in the power in the US like taxation laws,
labour laws and laws pertaining to capital market. Infringement of laws would attract penal
charges towards these firms.
SWOT of Lock-Awn Antibillow Device manufacturing firm (case study):
Strengths:
1. The products of the firm namely, Lock-
Awn Antibillow Device is scientifically
advanced.
2. It would create inquisitiveness among
consumers and enable the firm generate
revenue.
Weaknesses:
1. The RV firms in the case study is a sole
proprietorship firm, thus having limited
financial resources.
2. The firm in the initial stage would find
difficult to acquire skilled manpower
owing to financial resources shortage to
compensate them.
Opportunities:
1. Aggressive marketing of products.
2. Product innovation.
3. Listing on top stock exchanges like the
NYSE.
Threats:
1. The present firms are far stronger at the
RV firm in the case study.
2. The competitive threats from entry of
foreign firms in the RV industry in the
US.

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Evaluation of the market attractive for EMR innovations using industry analysis tool
(PESTEL and SWOT) (corresponds to 4A):
One can evaluate the present RV market in the US and establish that it is attractive for
EMR innovations. This is because the market of the US is experiencing positive trends like
increasing disposable income among the consumers and high rate of GPS penetration
(Businesswire.com, 2019). These factors would have positive impacts on the consumer
behaviour in the RV industry as they would boost the demand for RVs. Moreover, the SWOT
analysis shows that the RV firms can bring about continuous innovation to introduce more
superior quality RVs in the market. Thus, one can establish on the grounds on the SWOT and
PESTEL analysis that the US is attractive for EMR innovations.
Identification of the potential target markets for Lock-Awn Billowing Device (corresponds
to 4B):
(1) Needs:
The potential needs of the consumers or owners of RV vehicles would be acquisition of
billowing devices which would be able to resist the pressure of wind while travelling. This factor
would ensure that the billows do not open up while the vehicle is travelling owing to strong
wind, thus reducing chances of accidents.

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(2) Identification:
The identified customer segments which the RV firm would target would be upper and
middle class customers. These customers have disposable income to purchase RVs and make
trips in them.
(3) Attractiveness:
The attractiveness of the customer segment identified lies in the fact that they have high
disposable income to buy RVs. They would generate high profits for the RV firms.
(4) Profitability:
The customer segments would generate high profits for the RV firms.
(5) Positioning:
The RV firm in the case study should establish itself as a manufacturer of RVs with strong
billowing devices capable of withstanding wind pressure.
Marketing strategy decisions Eric and Mary Reynolds would have made (corresponds to
4C):
The marketing strategy decision which Eric and Mary should take would retailing RVs
and the billows through retailers like Camping World. This would rid the firm of acquiring its
own retailing outlet. This would lower the initial operating expenses of the company.

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Target market and positioning strategy with justification (corresponds to 4D):
The target market which the RV firm mentioned in the case study would target would
consist of the US. The firm should aim to spread into foreign market like Canada.
The firm should position itself as a manufacturer of technologically advanced and
affordable RVs as well as their ancillary parts. This would enable the firm to acquire and retain a
large customer base, thereby generating high revenue.
Marketing mix to be developed (corresponds to 4E):
Product- RVs
Pricing-Skimming price
Place-Third party retailers
Promotion- Online marketing sites like YouTube, magazines and televisions.
Sourcing of funds (corresponds to 4F):
Eric and Mary should borrow a business loan from a bank to fund their operations. They
should approach reputed banks like Bank of America to obtain loans at competitive rates
(Bankofamerica.com, 2020).
Part 3. Conclusion and recommendations:
One can conclude from the analysis that Eric and Mary should float the RV venture into
the market of the US. The PESTEL analysis clearly shows that the market situation in the US is
favourable for the RV industry. The country is politically stable, economically strong and a
technological giant itself. This means that the RV firm should enter the market. However, one