Ajax Alarms is a medium-sized U.S. firm that sells alarm clocks. It subcontracts the production of its clocks to a Korean firm, which manufacturers them based on Ajax designs and specifications and then ships the clocks directly to the Ajax warehouse in Kansas. Ajax markets and distributes the clocks throughout the U.S. and Canada. The clocks themselves are brightly colored novelty items. For example one of the firm's biggest sellers is a plastic rooster that crows in the morning. Last year Ajax reported profits of $5 million on total revenues slightly more than $50 million.
Ajax managers have determined that the firm has few growth opportunities in the U.S. and Canada and so must enter new markets if it is to continue to expand. The managers have decided to start by selling in Mexico. They have hired you, and internationally famous marketing consultant, to advise them.
Outline a marketing plan for Ajax. Ajax wants you to consider product policy, pricing, promotion, and distribution issues. In developing your marketing plan, consider standardization versus customization pricing, legal forces, cultural influences, economic factors, and brand name questions. Note specific areas where you can make recommendations to your client with rationale. If you feel you lack information in an area, identify the factors that must be addressed by Ajax in that area. For example, if you cannot recommend a pricing policy, describe the information that Ajax needs to acquire and evaluate when making that decision.
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