Direct-to-Consumer Air Conditioner

It’s summer (finally)! People are leaving their houses and enjoying the warmer weather. Well, not everyone enjoys summer heat – many older apartments and houses lack central air conditioning and depend either on fans or in-window air conditioners. While many home technology devices are sleek looking and high-tech, the lowly room air conditioner has remained unchanged for decades, retaining its distinct lack of style.

July air conditioners aims to change that. The new direct-to-consumer (DTC) brand takes a fresh look at the design of in-window units and is positioning itself as a design item in addition to being an effective appliance. It’s struck a nerve with consumers; within the first five days of announcing a wait list for the product, there were more than 3,000 people waiting in (virtual) line. Early ordering also lowers the cost of the units by 25% and guarantees a summer delivery.

There are two units of power: 6,000 BTUs (cools up to 250 sq. ft.) is $349 and 8,000 BTUs (cools up to 350 sq. ft.) is $399. The unit is square, sleek and uses a simple installation process. The customer first inserts a frame to lock in the window, then slides in the unit until it clicks into place. The front of the unit is a solid panel that comes in white, light blue, gray, and ash wood that consumers can switch out and customize to match their decor. July can be controlled via WiFi and scheduled to turn on at a desired time as well as controlled with voice commands.

Ready for summer?

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Show July: https://july.ac/
  3. For the July Air Conditioner product, who is the target market?
  4. Divide students into teams and have each team develop a profile of a target market for July. Include demographics, psychographics, behaviors, values, attitudes, etc.
  5. Based on the target market profile, what makes this product unique for these customers?
  6. July is a DTC brand – meaning it is not sold in stores. What are the considerations for this brand as it works to reach prospective customers?
  7. How is July positioning its products compared to the standard in-window air conditioners?

Source: Ad Week; Fast Company; Gear Patrol

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