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Section Ii

In: Business and Management

Submitted By ethicsgame
Words 4455
Pages 18
Section I: Situation Analysis

Jasco is working to be the leader in plug-in lights by utilizing licensing agreements and partnerships with box stores. Jasco is looking to expand their online presence and distribution capacities to deliver value to the customer.
The market that Jasco is in is the home lighting segment but more specifically the various categories of night lights. The motion night lights utilize the use of “enbrighten” which is a term Jasco uses to describe their long-lasting LED light bulb. The bulb is said to never have be replaced and since all of these are motion lights they do not have to be turned on either. To communicate this to the customer they utilize a well-designed website and also put this on the packaging. To help sell the product and to also further communicate value, Jasco has a licensing agreement with GE. The second category of plug-in lights are the Projectables. Projectables are an innovative way to market to kids. They project their favorite Disney, Nickelodeon, Marvel, or DC Comics character on the ceiling for a night light and entertainment utility. Jasco does not advertise so their primary way of reaching their consumer is to package the product nicely. With the licensing agreements with Disney, Nickelodeon, Marvel, and DC Comics, Jasco utilizes that recognition to help sell their products.
Jasco utilizes video demonstrations on their website as well as YouTube. In the Jasco building there is a production studio to increase this unique capability. Since many people don’t know about Jasco most of their communication with customers is via Amazon reviews. This is their form of customer relationship management where they can find out first hand what people like about their product and what needs to change. Jasco has also recently implemented a call center and an internet marketing team. When talking with marketing employees it was easy to see that they give customer reviews and complaints a large amount of weight when designing their products. With so most of their products being sold at large retailers they struggle with customer relationship management which is why they need to put more of an emphasis on direct consumer order fulfillment.
Jasco is working to increase customer value by communicating how important their LED bulbs are as well as coming up with a strategy to show consumers that exposed outlets are ugly. At this time, they are the leading innovators when it comes to children’s night lights with their Projectables line. Jasco is great at comprehensive logistics and their relationship with their buyers. During a visit of their plant we noticed how ready they were for a big box order. At any moments notice a store like Wal-Mart can request many orders of plug-in lights and Jasco is prepared to handle it. They are always looking for ways to save in manufacturing costs which is why they deal with China for their manufacturing. One drawback this has though is lead time which is why they have to think months ahead of time with what they need to order. For the consumers Jasco boasts lower prices and high quality with the GE brand. Their partnership with GE is indispensable and a main reason for their success. They know that consumers relate GE to a high quality product and increases their credibility. Another partnership that lends desirability is Disney. Disney is a brand that has stood the test of time so to see that name on a package parents know it is of great quality and children recognize their favorite characters. The partnerships are what adds tremendous value to the buyers and consumers because they know they can trust Jasco because of them.
Jasco needs to keep communicating the fact that their LED’s they put in their plug-in lights never have to be replaced and they are more energy efficient. However, this does not differentiate them from their competition because all of their competitors have this same capability. Jasco needs to look more on the style and increase effort on the naked outlet campaign to capture more market share and also get more people interested in buying night lights.
Jasco does not currently spend a large sum of money on marketing because they are primarily an impulse buy product. They do utilize customer reviews to design their products so in that sense they are a market-driven organization but they could definitely do more. They have a great product with great brand recognition. Their pricing is some of the lowest. The reason for this is their products are sold at big box stores and massive online distributors. They are able to sell to these companies because of their superior logistics and distribution channels. There is much room for improvement in the promotion category. Their product is not promoted via advertising, only promoted by where it is placed in the store and the packaging the product contains. Jasco’s products are placed in trade shows for the buyers and big box stores for the consumers. One advantage that Jasco has is their 3D printing and product development capabilities. These give them an advantage to their competitors during trade shows because they can construct unfinished products and sell them to their buyers giving them a bigger emphasis on placement.
Jasco’s mission from their company website is, “JASCO will serve our customers with excellence by striving to always exceed expectations and reinvent small solutions categories with innovative products that enhance and simplify people’s lives.” Jasco is definitely exceeding the customer’s expectations because they are taking something as simple as a night light and making it innovative. Expectation when buying a night light are fairly low so the fact that Jasco combines utility with style is very unique and consistent with their mission above. Jasco is making is simple to get all of your night lights from them in one easy to find area. Jasco has plans to make a display that will showcase all of the consumers plug-in lighting needs to simplify their life even further. Jasco has created the category of making a night light entertaining with Projectables so they are definitely following every piece of their mission in regards to their goals and objectives.
Jasco, as mentioned earlier, has pricing similar to their competitors because of where they sell their products. This is likely an area that Jasco does not have control of and they don’t seem too concerned off because of their superior logistics keeping costs low. The placement of their products is great because they hit every area that a consumer would think of to purchase a night light. By implementing their new display in big box brick and mortar stores, Jasco will continue to increase the effectiveness of their placement. Jasco’s promotion is severely lacking because all of their products are an impulse buy. They do not spend any money on advertising and their marketing department is tasked with passive marketing by just reading reviews, mostly on Amazon. This doesn’t mean Jasco is doing bad in their marketing efforts it just means that getting away from an impulse buy could prove to be advantageous for them. Jasco is a private company and has not provided us with any performance objectives. They have pretty high ratings on Amazon with most of their products but their emergency night light section is severely lacking on customer satisfaction. Most negativity stems from the night going out after a few months thus not working as a battery operated light. This negative aspect could have an effect on future sales but without hard data this is only an uneducated assumption.
Jasco has many organization resources that has propelled them to where they are today. They are a private company so we can’t evaluate their financial resources but they seem to have good relations with their employees and much experience in their field. The biggest resource that Jasco has is their partnerships. Jasco’s main partners are GE and Disney which they have licensing agreements with. We predict that Jasco needs these relationships to stay afloat and has no indications of dropping these companies. In the future Jasco will continue to stay on the leading edge of what brands consumers favor and work to create partnerships with those companies. Jasco has not given us any indication of increasing resources so anything we could say is purely just a guess.
Review of current and anticipated cultural and structural issues Jasco is highly customer orientated with their utilization of in house call center, YouTube videos, and social media presence. They listen to what customers say and adjust their products accordingly. Jasco is a very innovative company that embraces change very well and welcomes it. They have an internal system when employees send in a bunch of ideas and with their product development capabilities can rapidly create mock versions of those ideas. They have also implemented various logistics software to give their employees more resources and be more transparent about expectations. Jasco has embraced employee satisfaction in a big way by turning their breakroom into a lounge area that resembles a Starbucks. From our observation, Jasco has few to no internal politics as it is a family-owned and ran company. They put a huge emphasis on promoting within. Jasco puts very little priority at the current time into their marketing efforts as they focus on impulse buy. Recently Jasco’s CEO handed the company down to his sons and it doesn’t seem to have drastically changed the companies’ operations which is a good. Employee satisfaction is some of the highest we have observed as it is very employee focused and upper management looks to create a great environment and culture for their employees. Jasco’s structure with key partnerships and logistics supports their marketing strategy of impulse buys. If they didn’t have the key partnerships, brand recognition would likely not happen which would cause a decline in impulse buys. Without their logistics then they couldn’t get their products into big box stores that are conducive to impulse buying. Jasco has three main competitors in two of their three categories. They are Energizer, Meridian, and GV. Energizer is a power and lighting company that specializes in various batteries. Looking at their size and growth isn’t relevant because we can’t compare them to Jasco since they are a private company (this goes for all competitors). Energizer has the same capabilities as Jasco when it comes to utilizing LED’s and getting their product positioned at big box stores, therefore they are a direct competitor. Energizer is utilizing the words “path light” instead of night light in order to position their product. This shows customers the utility in a night light. In the kids’ section Energizer’s product is poor compared to Jasco’s Projectables line. Meridian is a company that specializes in “future lighting.” They have great capabilities in everything but the Projectables. Meridian does market to children but not in the same way that Jasco does. They are a direct competitor as well. The pricing for all competitors is very similar due to the constraints imposed by big box retailers. Scentsy is a company that offers plug-in air fresheners for a premium price. Some of their air fresheners offer a light to function as a night light. This is an indirect competitor because a Scentsy is definitely not an impulse buy as you cannot find it in the same stores that Jasco houses their night lights in. The demographic for people that need night lights is typically someone that needs it immediately and thus Scentsy might not be a good option since it takes awhile to get the product in from an independent distributor. However, due to the functionality it is still worth mentioning them. Other indirect substitutes, while not mentioning brands since it is irrelevant, are lamps, flashlights, incandescent bulb, fluorescent bulbs, and non-functional decorative outlet covers. These substitutes lifted above all meet a small need that a consumer that would buy a Jasco night light could have. The advantage that Jasco has is their product has multiple utilities in each one.
The customers of Jasco like Wal-Mart and Target can affect prices and product offerings tremendously. Jasco has virtually no control as many firms have most of the same capabilities that Jasco has and Jasco has to comply with buyer demands to keep the buyer happy. This means that Jasco needs to do everything they can to cater to the buyer while keeping their costs as low as they can get them. Consumers don’t have much of an effect because Jasco doesn’t charge premium pricing and they follow demands imposed by the retailer. Consumers will get value from this product and with how simple the product is there won’t be any shortage of components to make the night light. Suppliers can drastically impact Jasco as a buyer because Jasco does not have manufacturing capabilities. They do however have a good business model to where they have to have a very high volume of orders so it wouldn’t make sense for the supplier to exert power on them. It appears that Jasco is happy with their supplier and isn’t looking to change anytime soon. Jasco’s plug-in lights keep trends with energy efficiency by using LED lights. LED’s are much more energy efficient than incandescent bulbs. The government has stepped in to improve energy efficiency with the Energy Efficiency Improvement Act of 2015. This is a big step for the government in looking to encourage building owners and tenants to use greater cost-effective energy efficiency measures in commercial building. Since building owners should be aware of this law (as it has been signed by the president), Jasco can make a case for their product to be compatible and even recommended for commercial building owners. Currently the United States has a good relationship with China so Jasco doing business with them shouldn’t have an effect on the company. After speaking with a Jasco executive, they have no plans to manufacture their product in the United States because the costs would be too high to sustain. However, operating abroad can always be an issue with labor and political trends.
The current culture places a high emphasis on energy efficiency and Jasco meets that with their low energy LED bulbs. They make a product for each demographic because of their impulse buy status. Jasco has a wide demographic but is trying to appeal to a young adult crowd by making the night lights stylish and functional with their enbrighten line. The enbrighten line is their décor line which is where they see their biggest future profits from. Jasco looks to get consumers to switch from bare outlets to a more decorative look with added functionality. This will be a struggle for Jasco because the demographic that would buy something like this is also very protective over their plug-ins since each home has a limited amount in each room. By using one of Jasco’s enbrighten lights it completely renders an outlet useless from a consumer’s perspective that would like it for other actual plug-in electricity functions.
LED lights, as previously mentioned, are a great way for a plug-in light that is plugged in all day to make financial sense. They do not draw much electricity and most of the night lights are motion sensitive so they turn on when you need it and are off when you don’t. The internet has made it easier for consumers to compare different night lights but since most consumers buy their lights at big box retailers, it typically wouldn’t have an effect on the purchase. If the internet did have an effect Jasco has already positioned itself on most retailer websites and has a strong presence on Amazon, a successful online distributor.
Jasco doesn’t look to be expanding into any emerging markets at this time in their night light section. The target consumer for Jasco is likely to not be affected by changing economic conditions. A night light is a low cost solution for various household issues. Jasco has not provided us with financial data therefore we can only assume they are a stable company. The licensing agreements are one area that could put into question the stability of Jasco. Without GE and Disney’s licensing agreements, Jasco would not have the brand recognition that it currently has. These agreements also have a large effect on profit margin. The Disney agreement has drove down profit margin on their Projectables line. Jasco operations should not be affected by weather but in the event they are they have built a very sturdy tornado shelter since there operation is in a high risk tornado area. They could come up with a marketing plan to sell their emergency plug-in lights as something that every Oklahoman should have to be prepared for a big storm. Jasco donates a large percentage of their profit to help out the environment and community. Jasco’s night lights are energy efficient but we don’t know if their operations are energy efficient when it comes to the manufacturing of them since it is manufactured abroad. At this time a sustainability approach would not be recommended, especially having to deal with buyers with large buyer power that might not understand a sudden change in operations.
Consumers typically use the five stages of the buying decision process when picking up a night light. It starts with problem recognition. Most consumers see insufficient light causing a safety problem. This typically happens during the night when there isn’t sufficient sunlight to find a light. Guests can also have difficulty navigating a new house and a night light offers a solution for lighting the way. Another way that safety is incorporated is during an emergency when the power is out. Some of Jasco’s night lights have a capability where they can unplug and still be functional via a rechargeable battery. A problem could also be a child being afraid of the dark. Some children don’t like night lights so it makes sense their favorite character could be projected onto the ceiling to help them sleep. The second stage of the buying decision process is information search. Since night lights are typically impulse buys, there is not a lot of information search. Most of the information about a night light is gained from reviewing the packages. On the package it lists the features and provides pictures of its functionality. In some cases, if someone wanted to buy a night light online they could watch YouTube videos and look at Jasco’s website. If they hadn’t heard of Jasco then they could go onto Amazon and read a bunch of different reviews to see if the product met their specific need. The third stage is an alternative evaluation. This is where Jasco has the most to lose, all of the night lights are lined up and the consumer has to pick one based on personal preference if it is an impulse buy. Consumer would look at price, utility, and brand recognition. When purchasing a kid’s night light, the kid might tell the parent of the choices which one has their favorite character on it and that is the one that the parent would purchase. The fourth stage is the purchase decision; this is where the consumer finally makes a decision on what they would want. This typically all comes down to does the plug-in light fit their need and their budget. Since all of these categories are in low cost alternatives; price might not have a large impact on the purchase decision. The final step is the post purchase decision and this is where Jasco can find out how their product did. Consumers could leave a review on Amazon if they purchased it from there or they could leave a review from the store they purchased it at. They could also tell their family and friends about the products and encourage them to buy some for their family. Consumers could also buy more when new models come out especially with the Projectables line.
Jasco could go with an overall quality approach and create a luxury night light. Create something that really appealed to the consumer’s eye and that a large retailer would agree to carry at the higher price point. More consumer research would be needed to be able to see how to tailor their product to specific consumer. As it stands right now the limited technology in even the most advanced night light that Jasco offers would not warrant a luxury price tag. It would not make financial sense for Jasco to go seeking this higher income market when they thrive off of their low cost solutions.
Each one of Jasco’s night light product line has a different demographic, however Jasco has not given us any of that information. We do know that a consumer that is buying a Projectables product is someone that typically has a kid and wants a novelty item in their child’s room. The enbrighten and decorative night light line is purchased by someone that wants to decorate their house but this doesn’t really tell us much because these can also function in a child’s bedroom. Any insights gained from looking at demographics without definitive research is just speculation. These demographics are hard to find because Jasco sells to the large retailers which encompasses a wide variety of demographics not giving a preference to specific one. The key players Jasco sells to are Wal-Mart, Target, and Best Buy. These retailers cater to a wide variety of demographics and large customer base so an individual consumer is not likely to have a large impact on Jasco from a buyer power perspective.
Large retailers like Jasco’s product offerings because they provide them with an array of lighting solutions for homes. Jasco is able to produce good products with great brand recognition at a reasonable price because of their logistics. Jasco is capable of housing the product in their warehouse until the retailers call on an order with little notice. Retailers need to stock their shelves and fill their customers’ needs. For the consumer the night lights meet a functional need. This need is not typically someone would go to a store solely for but the need may be realized if they see the product, thus making this an impulse buy. The need is usually something that is low priority and something they may have not even thought of. Jasco’s operations are set up to handle large retailers by giving the retailers what they need. Jasco’s night lights fill many needs for the consumers. Some needs that Jasco fills aren’t even realized by Jasco until after the fact. Basic benefits for a consumer are lighting a room at night, never having to replace the LED bulb, light turns on and off automatically, and suppressing a child’s fear of the dark. For the buyer, large retailers buy Jsaco’s products in bulk orders that are shipped directly from the Jasco warehouse. These products are delivered alongside other products that Jasco carries as well if it fits the order. For the consumer, they purchase the product using one at a time depending on their need. That is because of how the products are currently being displayed where each light is just an alternative to the other. Jasco is working on a display that will educate the consumer so they can understand that each night light can have a different use. This should cause customers to purchase more than one at a time to fill their various uses.
Buyers purchase Jasco’s products during trade shows and direct sales through the company. A consumer can buy a Jasco product in many different places but the biggest is through a large retailer. A consumer can also get it direct from Jasco’s website, Amazon, and big box retailers’ online website. Direct from Jasco is listed on here but Jasco is not equipped to handle a large sum of these orders therefore it drives their profit margin down. Jasco is an innovative company however so they are working on improving this weak capability.
Jasco is partnered with GE, Disney, and other reputable companies which gives them favorable brand recognition. They also have partnerships with Wal-Mart, Target, Best Buy, and home improvement stores such as The Home Depot. A lighting company just starting out would have a hard time forming these partnerships. However, a company that is competing on the same shelves has similar capabilities in everything but Projectables. This is where Jasco has a large competitive advantage as the utility is not there from any other product and the licensed product is absent as well from the competition. Brand loyalty works in Jasco’s favor because of the licensing agreements. GE is a reputable brand that people associate quality to. Disney people associate happiness which attracts customers to all of Jasco’s products. Consumers feel like they grew up with Disney products and most may have had a GE appliance as well they remember.
Even with all of these advantages consumers may not purchase the night lights. This is mainly because night lights are considered a low-regard item, which means that the needs of a consumer are not pressing. It is nice to illuminate a hallway for a guest but not an absolute necessity. If the potential consumer is not in the vicinity of the night lights, then they won’t know to purchase it most of the time. Night lights have a reputation of something for kids or for older adults. Potential customers might consider their flashlight on their phone to be sufficient since it is portable and always with them. If the needs are met by Jasco but the color isn’t right, or they recognize another brand, the consumer might buy the other product. This comes down to chance and preferences of the consumer. It isn’t likely the consumer is looking for a Jasco product so it will come down to packaging and brand recognition. The promotion is out of sync with potential customers because there is no promotion. Potential consumers need to see the offerings that a night light provides to keep from having to rely on impulse buys. There is massive potential to convert to non-users to users by use of advertising. Currently the advertising space for night lights is unsaturated and Jasco could be the first movers in this space. Night lights are starting to meet consumer needs. Jasco needs to analyze survey results and come up with a marketing plan and go after their idea of ugly outlets. Consumers need to realize that exposed outlets are not something to desire and Jasco can give them a product that exceeds expectations.

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