Mobile Plus Group Ltd market analysis - Research Paper Example

I. The target market.  Mobile Plus Group Ltd market categorized its target market into two main groups which are the following; a) Business users –The main target market of the business are the business phone users. The features of our product which is dual or triple SIM celphone addresses their particular need to be constantly connected in handheld mobile device by having a spare line without the inconvenience of an extra phone. In addition, business people who are value conscious will be able to appreciate the savings that our dual and triple SIM cellphones can offer as it affords them an extra line without the additional cost of an extra phone. Business venturers usually contact different kinds of people from different society classes thus using all the available network services that there is. Most of the time, these networks compete each other and offer promos that are only exclusive to a Same Network basis. In this case, business people tend to switch from one SIM to the other just to avail of the promos whenever they use their cellphones to call their wide array of clients who use different Networks. That is the reason why to target business people in selling dual and/or triple SIM cellulars is a practical idea to pursue.Giving them the freedom to use at most, three different Networks at once to contact their clients without having to switch phones offers efficiency and savings from the costs of buying another cellular phone. This will also offer a better transacting means for business users who would usually organize in just a single phone the events that they have to meet throughout their working schedules. b) Personal users – Our secondary market will be personal cellphone users or the general public. Personal cellphone users can be a profitable segment in the market given their sheer size. II. Three external behavioral Factors that will impact target market.  The consumer’ behavior and buying preference are influence by several factors. Typical example of how these behavior and preference is influenced by the environmental factors which are media, culture and social influences. The level of awareness and knowledge about certain product types also significantly influence market preferences. As such, business should always be aware of the changing market motivation and consumer psychology as this has a direct impact on the market’s buying decision. This is important for the company to be able to adapt to the changing environment and keep the business viable. Meanwhile as mentioned earlier, the business classed people are to be targeted. It was already mentioned earlier that the efficiency that a cellular phone that caters to all the Networks of the clients without having to switch or spend for another phone offers a cheaper lifestyle alternative for business professionals who are always in the run contacting their clients. They will be happier and more grateful that a phone wherein it would served all the savings that they will have from buying two or more phones just to cater to the different SIM cards of different phone Networks. Moreover, the idea of managing only one cellular phone is also a great release knowing that there is only one cellular to be mindful of. a) Changing Fads – The core of our business which dual/triple SIM cellphone is technology based that its trend changes at a dizzying pace. Given the past pace of technology turnover, it is normal that what is “in” today will become obsolete tomorrow. Being in this business requires constant monitoring on technology trend to be able to adapt and respond to the changing fad in technology and guard itself from obsolescence. b) Reaction to Economic Crisis – The market’s buying decision is significantly determined by their purchasing power. As what we have learned during the recent financial crisis, consumers tend to delay or forego purchases to be able to adapt to the economic crisis. Anticipating how the market reacts to a crisis will enable a business to better adapt to a temporary set-back in demand by reducing inventory. This will save the company unnecessary cost as unutilized inventory is an unnecessary cost which could be considered a “baggage” for any business especially during a financial crunch. Although this case may rarelyapply for business professionals who usually have to purchase a new product for the sake of it being needed for transactional communications. The target market will not usually delay if there arises a need to purchase a new communication device that is, nowadays, a necessity for any business venturer. c) Innovation in technology – new technology innovations and emerging trends should be monitored by the company to keep itself relevant in the industry. Any trends which could threaten the existing product line into obsolescence should be carefully monitored so that the company could appropriately respond for its survival. Although at this case, the target market is usually not a trendsetter because it is the functionality of communications that a business cellular user will look for and not the amazing added features a phone can offer. The target market is usually on with the main functionality of a cellular unit without sacrificing a huge amount for it. They usually buy another model if their unit wears out because of regular usage—because that is how business transaction communications work, they almost run 24/7. III. Three internal behavioral factors that will impact on your target market.  a) Deterioration of Customer Service/Mismanagement – The business have envisioned itself to have a customer service that is second to none. Naturally, customers will be attracted towards the company because of this commitment of service to the customers. When frontliners fail to competently respond to customer inquiries or adequately present the product, the target market’s expectation about the company will be disappointed to the effect that commitment will not translate to customer patronage. b) Lapses in After Sales – this is in relation to the above behavioral factor that can drive the customer away. Lapses in after sales support is the common peeve of customers when they engage in technology based products as it renders the product unusable when issues arise. To maintain customer loyalty, after sales support should not be neglected. c) Pricing – If the business will decide to price its products above the competition, it will have a direct impact on the target market as it will repulse the customers to move to the competition. Our company has direct competitors selling the same product and as such, the company should be conscious about its pricing so as not to price its products significantly above the competition. IV. How these behavioral factors will influence customers to buy your products or use your service.  The company’s ability to know the changing environment is crucial considering that it belongs in an industry known for innovation and short product life cycle. This is important for the company to be always in the “demand” cycle of customer and keep itself relevant as a business enterprise in the market. It is equally important that the business can adequately respond to this market demand by appropriately behaving in a way that is responsive to customers’ need. There should also be a competitive stance toward the company’s competitors. To be able to keep up with the demands of the customers and influence them, the company must have a trustworthy and credible name as well. At the same time, it should present a reasounable pricing for it’s units given the fact that its primary target market aims for functionality’s sake and not for technological flaunting’s sake. V. How you will now organize the marketing mix showing how the behavioral factors will be taken into account. Knowing the market environment and how the company should behave to respond to the customers can tremendously help the company in positioning itself in the market and gain market share. With regard to the product, it ensures that the company’s products are in demand and that there is a need that it will address. It also guards the company’s products against obsolescence. Knowing the environment will also enable company to better present its product to its customers. With regard to place, it will make the company better informed as to where and how to physically position itself to make it product more enticing and more responsive to its customers’ needs. Knowing external factors like competition is critical on how the business will price its products so that it can price itself within the range of the competition to keep itself competitive. The mistake of not knowing competitor’s price might render the company’s products pricey thus driving potential customers to the competition. Knowing the changing fads and what motivates the market to buy will spell a difference between an effective promotional drive that can drive the sales up and a marketing drive that is ineffective. An effective promotional drive is based on how well it knows the market. Knowing that a lapse in customer service, both before and after the sales can undermine the company’s competitiveness will keep the business to be always on its toes. The realization that inconsistency and laxity in customer service drives the customers away will enable the business to constantly reassess the quality of its system that enables its people to deliver customer service that meets and exceeds customer expectations. VI. Refunds and Return Estimation Budget The refunds and return budget is preferred to be cut a minimum since it will sacrifice the identity of opened units that are returned just because of a customer’s change of mind. The project will allot only an estimated 20% cost for refunds and returned units if there would be any problem within a given warranty period. For example, if a customer who purchases a handheld phone from one of your retailers have some claims that the product is not in a viable condition, it must first be inspected by a retail store manager. If the problems can be solved by its technician, then, the customer brings his/her old unit home again. If certain problems cannot be identified, that will be the time when the cellphone unit can be replaced, but by the same unit or model. Certain considerations are also applied in making a term on refunds, recalls, and returns. For example, a unit is forcefully and obviously wrecked by a customer, there should be specific terms that will state the condition of the item before it can be considered for a refund or a recall. The 20% estimated allotment from the Net earnings was reached by considering the idea that there will be terms that will minimize the chance of customers getting a refund or return. Instead, the means in fixing a dysfunctional unit should be a more budgeted section of the company. 20% is a good budget for recalls, provided that it is linked to a trustworthy manufacturer who has good product reputation. With less recalls in mind, the initial 20% from the Net Earnings can be saved if ever a bigger need of all model recalls falls short in the future of the business. Read More