Market Entry Strategy for a New Start Up Manufacturing Innovative Smart Television - Essay Example

Market Entry Strategy for a New Start Up Manufacturing Innovative Smart Television Table of Contents Executive Summary 2 Introduction 3 Analysis 3 Recommendation 10 Conclusion 10 References 11 Executive Summary As the CEO of our firm, I need to plan the market strategy before entering the marketing in the United Kingdom. Our strategy should look into penetrating the market in order to generate sales. In order to do that, we need to understand the market of Smart televisions in UK. In the following paragraphs, I have done the analysis of market after going through some surveys. The UK has fewer Televisions. The normal family now has 1.83 TV sets, down from a normal of 2.3 sets in 2003. At the same time they are viewing more TV on additional devices such as mobile phones and tablet. An average viewership is normal of 4 hours 2 minutes of TV a day, up from a normal of 3 hours 36 minutes a day in 2006. A TV License in the UK is obligatory and spreads you to watch on any TV, portable gadget or tablet in your home or progressing. In 2013, not exactly one for every penny of UK customers watches just time-moved TV. We have analysed the market of United Kingdom with respect to the smart televisions. At the end I have suggested the appropriate penetration strategy based on their strengths and weaknesses. Introduction As the CEO of our firm, I need to plan the market strategy before entering the marketing in the United Kingdom. Our strategy should look into penetrating the market in order to generate sales. In order to do that, we need to understand the market of Smart televisions in UK. In the following paragraphs, I have done the analysis of market after going through some surveys. (Rivera & Oh, 2013) Analysis The UK has fewer TVs: the normal family now has 1.83 TV sets, down from a normal of 2.3 sets in 2003. At the same time they are viewing more TV on additional apparatuses: a normal of 4 hours 2 minutes of TV a day, up from a normal of 3 hours 36 minutes a day in 2006. A TV Licence in the UK is obligatory and spreads you to watch on any TV, portable gadget or tablet in your home or progressing. In 2013, not exactly one for every penny of UK customers watch just time-moved TV. (Rivera & Oh, 2013) Premium TV characteristics are on the ascent: More than a third of the TV market esteem in 2013 was from sales of 3d Televisions, and sales of kind sized screens (43 inch or more) expanded 10 for every penny in the previous 12 months. Informal organizations permit individuals to captivate with one another progressively like at no other time: 40 for every penny of all tweets are about network shows between 6.30pm and 10pm. Smart TV sales Between the first quarter of 2010 and the same period in 2013, Smart TV sales expanded by 211 for every penny, from 115,000 to 358,000 units for every quarter. Complete sales figures demonstrate more than 2.9m Smart TVs have been sold in the UK since 2010. Wide screen sales We looked in to upsize our survey in 2013, as sales of enormous screens (43inch+) expanded 10 for every penny in 12 months. 3D TV sales The pattern towards premium characteristics is on the ascent. More than a third of the TV market esteem in 2013 was from sales of 3d TVs, in spite of the fact that this characteristic now comes as standard in most high-end sets. 6% of homes have a 3d/3d Ready TV. In light of the above review we can comprehend the market on Smart TV is developing continually so we have the chance of producing sales in the wake of infiltrating the market and making an impression in the buyer's personality. Give us a chance to look in the our infiltration methodology beneath • attracting your rivals' clients: We will bait clients far from our rivals by building separation between ourselves and them, expanding promoting exertions, or cutting your costs. We recently have the included focal point of our item as it is a creative smart TV contrasted with our rivals. • attract nonusers to purchase your items: This procedure could be carried out by offering demo setups of our items in our showrooms, conforming the cost up or down, and elevating different utilization to pull in these clients. We additionally need to see as to who all are our rivals in the smart TV market in UK. Let us look into it below. Samsung is an unanticipated mover in the smart TV industry. As per Strategy Analytics, the Korean goliath holds the biggest market stake of worldwide smart TV shipments, involving 26% of the market. Conscious of expanding rivalry, Samsung is adding premium characteristics to its smart TV sets. Specifically, the Korean monster is contributing intensely on its programming advancement unit, which permits alternate gathering designers to raise provisions for its TV sets, from diversions like Angry Birds, to instructive programming like Discovery Channel. Therefore, there are now more than 1,400 smart TV applications accessible. Besides, the amount of alternate gathering engineers has developed from 550 to 25,000 in under two years. Samsung faces savage rivalry from LG who are again a real player in the smart TV market. More modest contenders like Sony, which involves 11% of the market, will offer a reasonably distinctive encounter so as to remain aggressive. Case in point, Sony has given careful consideration to its smart TV's outline, which beats the rivalry as per generally surveys. SWOT Analysis Strengths The strength for our company at this point of time is the unique and innovative feature in our smart television which is not present in the other competitor’s product. Weaknesses Fierce competition from market leaders like Samsung and LG. The Smart TV is furnished with web connectivity and a webcam that carry a security risk; security masters observed that they could hack into the hard drive and assume control over the control of the implicit Polaroid and mouthpieces Samsung has as of recently secured its social media vicinity through Facebook and Twitter. An unique Facebook page for its TV product offering (Samsung TV USA) has produced more than 1.3 million preferences, and the Twitter page (@samsungtv) has more than 37,000 adherents. These numbers, in any case, are not emulated by captivating substance that ought to be supplementing its intelligent sit Opportunities The Smart TV's prosperity is obvious in the developing income rate as contrasted with past year's income, demonstrating a development in the customers' investment and cognizance about the item. The innovative feature in our television which help in gaining the market. Threats Smart Tvs have a higher value focus contrasted with their rivals and other advanced Tvs in the market. Despite the fact that the characteristics are not so much practically identical to the ones in the Smart TV, in any case it gives shoppers shabbier choices. Additionally, Apple TV is likewise offered at much lower cost, and all in all it likewise gives coordination from the clients' smart telephones and tablets to the TV. From our meetings and review, we establish that most individuals in the target market are as of now fulfilled by their present TV, and they don't feel that they will need and utilize all the characteristics conveyed within the Smart TV. Pricing Strategies We will be targeting the medium as well as the high end consumers. Our price point needs to be competitive compared to our competitors. We need to keep our profit margins low at the initial stage in order to grab the consumers. So, essentially we will be concentrating on penetrating pricing strategies. We will be offering wide range of options and screen sizes to the customers. The high end model would consist of those unique features along with the super high definition display which will be capable of playing blu-ray movies through pen drives. On the other hand the low end model will not have the unique feature but will have other essential features like USB plug and play movies, playback of High definition movies, etc. this distinction segments and features will help us penetrate the market of UK and make our smart TV’s sell. (LaSalle & Terry, 2003) Value Proportion As we can see that the market of United Kingdom has a fierce competition in the television segment. All the major players like Samsung, LG, Sony, etc are already present in the market. So in order to make a difference and create a value in the market, we need to the consumers realize the potential of our product. The smart TV’s unique feature needs to be shared with the customers. Advertising will play a major role in attracting the customers here. Once the customers start becoming aware of our company and our product, we need to further push it by giving live demos in places like malls and plaza’s to attract the crowd. Out here below the line activities will play a major role. The customers might forget an advertisement, but when they see, touch, feel and use a product, it creates a unique impression for them. (Dunne, Roberts & Xu, 2013) Distribution Strategy At an initial we cannot setup our own manufacturing unit in UK as it would incur huge expenditure and cost which is not advisable initially. First we intend to sell our product through tie ups with various dealers and electronic malls in UK. We will also open up our exclusive showrooms in some of the prime location of UK. We will be importing the smart television from our parent manufacturing unit and will be distributing it to various retailers with whom we tie up. At a later stage once we start gaining market presence and the sales starts showing profit, we can think of further establishing ourselves in a better manner. Operations Strategy The operations strategies need to be unique in order to succeed in the new market which is full of operations. The operations need to be sustainable in nature so we will need to keep an eye on it. The main operations will be done from the parent country and at a later stage we can hire employees to locally handle the operations in United Kingdom. This will be the initial operations strategy for starting the business in UK. Blue Ocean Strategy According to the strategy we will not be concentrating on our competitors rather we will try to focus on other alternative methods of promoting our smart TV. Secondly we should not think of our customers who are already ready to buy our television. Rather we should try to grab those who are not willing to buy our product. We can do it by organizing surveys and distributing questionnaires. Crossing the chasm strategy According to the crossing the chasm strategy, the conventional technology adoption life cycle had five parts: Innovators - Fans who adore new innovation, actually when it doesn't yet have a reason. Early Adopters - Visionaries who perceive how technology could be utilized to take care of an issue. Early Majority - Sober minded thinkers who need social confirmation that an innovation has esteem before embracing it. Late Majority - Conservatives who incline toward old innovation until its clear another technology rules. Laggards - People who abstain from embracing new technology no matter what. The Innovators and the Early Adopters structure the early market. However the technology that attempted to procure innovators and early adopters no more work with the early majority. We are new in the market of UK but our product is innovative and different from others. We will build on this strength of ours and try to rule the market. Recommendation In order to succeed in the market of UK we need to keep some of key things in mind. Firstly, we need to be very competitive with our pricing in order to beat our competitors and gain the consumers. We cannot set up our own manufacturing unit in the initial stage as it would involve huge investments. We need to concentrate on ground level activities such hosting events in malls featuring our smart TV’s and displaying the unique features to our customers with the help of live demos. These things can help us establish a firm market in United Kingdom. Utilizing the blue ocean strategy and the crossing the chasm strategies will be helpful in our scenario. Conclusion Looking into the SWOT analysis and understanding the market of smart televisions in UK, we saw that it will be difficult for us to penetrate the market which already filled with fierce competition. Our strategy should be to beat the price point of our competitors and make smart TV affordable for everyone. Penetrating pricing will be the only way of entering the market of UK. While entering the marketing we need to come up with huge advertising campaigns in order to make our presence felt in United Kingdom. References 1. 'A big step for Smart-TV', 1997, Advertising Age, 24 February, Academic Search Premier, EBSCOhost, viewed 8 February 2014. 2. Rivera, J, & Oh, C 2013, 'Environmental Regulations and Multinational Corporations' Foreign Market Entry Investments', Policy Studies Journal, 41, 2, pp. 243-272, Academic Search Premier, EBSCOhost, viewed 8 February 2014. 3. Dunne, T, Klimek, S, Roberts, M, & Yi Xu, D 2013, 'Entry, Exit, and the Determinants of Market Structure', Working Paper Series (Federal Reserve Bank Of Atlanta), 2013, 10, pp. 1-50, Academic Search Premier, EBSCOhost, viewed 8 February 2014. 4. Henderson, G. R. 2004, Consumer Associative Networks as Process-Tracing Measures of Brand Feedback Effects. Handbook of Marketing. Manfred Bruhn (ed.), Gabler Press 5. LaSalle, D and Terry B. 2003, Priceless: Turning Ordinary Products into Extraordinary Experiences, Harvard Business School Press Read More