Mobile Product SLR-10 - Case Study Example

rkеting Рlаn xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecturer xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Environmental analysis The major markets for our mobile product SLR- 10 are Asia and Europe. This makes the population structure, composition, age, and nationality, race, religion, family size, peoples occupation, education level and gender of the population in these regions an important aspect in determining the amount of sales (Czinkota 2012). This is because the various aspects of demography determine the population’s accessibility to the market, their purchasing power and their demand for our product SLR-10. The economic status of people in this regions as well as the economic status of the country also influences the market performance. Political stability and the legal framework operating in this market region enhance the growth of the market share thus the organization is able to achieve high sales. Europe and Asia are well developed in use of technology this increases their access to the product SLR-10 as well as increases the demand for the phone over a large population this results in increased sales. The ability to use technology in marketing of the products facilitates increase in market share. This company needs to put in place strategies that will protect the market of the product from being affected by natural calamities. Competitor analysis The products direct competitors are Phantom-3G, Torch and Torch-S. This product is also getting competition from the other company products as well. The competition position of these competitors is that they are at the same level of competitiveness as this product. This is because; they have the same market share. They present a big threat to this product in terms of market share expansion and growth. The future competitor moves are that the competitors will increase the level of marketing to increase their products awareness and increase market share. The competitors will also launch new products din to the market, Cohen (2005). There exists competitive vulnerability for the competitors; one of them is dealing in single product line in the same market. This is detrimental for the competitors. As such, this company will exploit this opportunity to position itself in the market accordingly. Another area of competitive vulnerability is lack of differentiation. Consumer behavior The availability of warranty for the customers gives the customers the chances to get a guarantee for the product for a given period. The mobile product also enables the customers to take video and photos because of the characteristics of the product. The extensive research and development carried out in the organization facilitates the production of quality brand for the customers. As pointed out by Czinkota (2012), Customers before making a purchase will go through a process of decision-making. They have to perceive the need for the product. After establishing the need for the product, the consumers will also go their way into gathering relevant information about the product. The customer will then do an evaluation of the different brands available for them before they can make up their mind on to making the purchase depending on the terms of sale. Our customers for our product SLR-10 are involved is such process since they have to analyze their need for the product and seek information about it before they can decide on the making purchase for the product. Objectives My plan for the round five is to continue and keep selling SLR-10 in European and Asian markets. To make sales of 1000k units in both Asia and Europe for SLR-10; this will make the company access a larger percentage of the market share than it currently does. This will be achieved through increasing the awareness of the product in both Asia and Europe. The Financial objectives for the company are increasing the profits realized from the product. This will be achieved through achieving an increase in the sales volume. Reduce price level from $250 to $233 in the European market and reduce the price level from $239 to $225 in the Asian market. We target households and company segments. This company is also aiming at increasing its profit margin by cutting down on production costs with cost effective production techniques. This company has the objective to increase its competitive advantage to increase its market share. The management has in place competitive strategies that are going to enhance this. They include, release of new classic SLR-10 phones, increasing advertising of their products and focusing their target on households since it will facilitate increase in their sales and enhance growth in their market share. This company has overall objectives of increasing their market share as well as attaining outstanding performance among their competitors by increasing their sales. Segmentation, Targeting and Positioning The different segments for SLR-10 in the two markets are behavioral, psychographic, geographic and demographic segmentation. Each of these segments contains potential customers. The population in these segments earns different levels of income; they have different beliefs, varying needs, technological levels and value the phones differently. As such, these segments will assist in grouping the market in specialty characteristics for effective marketing, Cateora & Graham (2005). The segments possess characteristics such as lifestyle, purchasing decisions and size of the market. The target market for this product is the European and the Asian markets. These two markets will be targeted in terms of age, income level of the customers, gender and geography. This is because; the consumers in these target markets have different needs. This company will use forum-marketing, article marketing and online marketing as the main strategies/ approaches of target marketing. The company will use positioning strategy of creating positive perception of the customers. This positioning strategy will pass unique selling propositions to our customers. This company will differentiate itself from the competitors by offering quality prices, quality product and incorporating attributes to encourage customers to buy our products. This will add more meaning as well as highlight central theme. In addition, it will emphasize the significant benefits in a unique manner; the competitors will not easily follow this, Cateora & Graham (2005). Product strategy The three levels of SLR-10 are the core level, actual level and the augmented level. The core level will set to look at what the customers set to but as well as incorporate the benefits we would like the product to offer to the buyers. It is the basic level in developing SLR-10. The actual product will involve translation of the core benefits in to the product for the customers to buy, the aim of this will to design a product that will persuade customers to buy SLR-10. Lastly, the augmented level will involve deciding on addition of non-tangible benefits that this product will offer. This will be very important, as it will be around after sales services such as help lines, cheap delivery and warranties. These services, especially warranty, will offer customers peace of mind. This is the reason for producing this product. Considering the target market, this type of phone falls under the growth stage of product lifecycle. This is because the sales for SLR-10 have continued to increase at an increasing rate. This brand name was chosen because it creates the company credibility and creates loyalty. The brand name also conjures up images in the minds of consumers. This product is taking advantage of product development strategies; it has used modification and diversification strategies. The position of this product in the BCG Matrix is the stars, it is making high growth and acquiring new market share. Pricing strategy This company uses the value- based strategy in pricing the product SLR-10, this makes the company to differentiate their products and enhance quality. The company has a normal demand curve because prices set directly determine the demand level. The curve indicates that the company has inelastic demand, which means that prices can change in the future. Break even approach is a pricing approach that would also have been used in pricing SLR-10. This approach enables one to forecast the point that they are going to realize certain amount of profit thus adopt strategies that will enable the company reach to the targeted profit. If the product was a new entrant into the product then this company would set its price using cost-based approach so that it would fix its prices such that the product will be able to sustain profitable prices in the market (Czinkota 2012). Marketing Communications Strategy The reason why I have chosen to spend money promoting this product to the segments of the market is to increase brand awareness, more people will learn of this brand, the company, and this increase selling opportunities. This is also to provide information to the customers about the product and how to use it as well. Importantly, the promotions have been used to build sales and profits. The marketing communication mix I would use in this target market is sales promotion, advertising, public relations and direct marketing. Distribution Strategy The choice of distribution strategy is crucial in success of this product in the target market. As such, this company will use the distribution strategy that is most effective in moving the phones from the source to the customers in both markets and in all segments. To reduce costly distribution operations, this company will distribute the product using intermediaries and retailers as the distribution strategy. This distribution strategy is not expensive and it reaches all the customers in the market. This is the main reason for choosing this distribution strategy, Juin (2000). The level of market exposure I would apply to this product is awareness and increased market share. This will help explore possibilities for expansion and increased sales of the product. References Cateora, P, R, & Graham, J, L, (2005), international marketing, McGraw-Hill/Irwin. Cohen, W, A, (2005), the marketing plan, Wiley. Czinkota, M, R, (2012), international marketing, Cengage Learning. Juin, S, С, (2000), marketing planning & strategy. Read More